Stocks Mixed at the Close as Shutdown Jitters Linger, Oil and Gold Firm, VIX Near 20

At the closing bell Friday, the Dow Jones Industrial Average rose about 75 points (0.2%) to 46,987, the S&P 500 added roughly 0.1% to 6,729, and the Nasdaq Composite slipped 0.2% to 23,005, while the Russell 2000 climbed 0.5% to 242. In commodities, crude oil (Dec) hovered near $59.73, up 0.5%, and gold (Dec) traded around $4,008, up 0.4%. The Cboe Volatility Index edged up to about 19.7. Markets closed on a cautious note amid persistent uncertainty over the U.S. government shutdown and its potential ripple effects on the broader economy.

A deal to end the U.S. government shutdown appeared dead on arrival late Friday afternoon. Democrats pitched a stopgap clean funding bill paired with a one-year extension of enhanced ACA tax credits and longer-term talks on health-care affordability—an offer Republicans rejected. “No, we’re not going to do that,” Sen. Steve Daines told Fox News. Senate Democratic Leader Chuck Schumer, of New York, proposed the deal and called it a "simple compromise."

Because of the shutdown and staffing shortages, the FAA began trimming flights at 40 major airports, starting with a 4% reduction on Friday and stepping up to 10% by Nov. 14. The agency issued a press release claiming the cuts will “maintain the highest standards of safety” as staffing strains build during the shutdown. Transportation Secretary Sean P. Duffy said, "My department has many responsibilities, but our number one job is safety… It’s safe to fly today, and it will continue to be safe to fly next week because of the proactive actions we are taking.” FAA Administrator Bryan Bedford added that the FAA is “proactively reducing the number of flights” and will not hesitate to take “further action.” Airlines must issue full refunds for cancellations, the FAA said.

Carriers began reshaping schedules. Bloomberg reported that United Airlines projected about 510 flights would be cut from Friday through Sunday, with 184 on Friday alone, and plans further trimming to reach the 10% target next week. Delta is slated to make approximately 170 cuts, Southwest Airlines is expected to make roughly 120, and American Airlines is anticipated to make about 220 daily cuts through Monday. CEO Bob Isom told CNBC that the reductions are already crimping Thanksgiving bookings.

Meanwhile, Bank of America Institute data indicated that after-tax wage growth in October cooled to 1.0% YoY for lower-income households, 2.0% for middle-income, and 3.7% for higher-income groups.

Payroll growth held near 0.5% YoY, and households receiving unemployment benefits rose about 10% YoY—signs of easing pay pressure without a spike in joblessness.