Dow Advances as Small Caps Rally; Nasdaq Slips, Gold Climbs

Stocks ended mixed Friday, reflecting a late-week rotation beneath the surface. The Dow Jones Industrial Average rose 238.56 points, or 0.51%, to 46,758.3, while the S&P 500 eked out a gain of 0.44 point, or 0.01%, to 6,715.79. The Nasdaq Composite fell 63.54 points, or 0.28%, to 22,780.5. Small caps outpaced the broader market, with the Russell 2000 up 0.75% to 245.84 at the close.

The split tape came as investors weighed a familiar policy backdrop with still-resilient economic underpinnings. Research on prior U.S. government shutdowns shows equities have typically absorbed the shock with defensive positioning and sector rotation, rather than sustained declines—patterns that can buoy blue chips and value shares even as growth stocks stall.

At the same time, household demand remains a pillar. A summary of recent indicators points to strong consumer spending and a solid Q3 growth pace in the Atlanta Fed’s GDPNow tracker, factors that help support cyclicals and domestically focused names—an echo in Friday’s small-cap leadership.

Individual stories also shaped sentiment in pockets of the market. Rumble’s shares surged following news of an AI partnership with Perplexity, highlighting how investors continue to reward tangible AI tie-ups. “We are thrilled to partner with Perplexity as we dive deeper into the AI space across our customer base,” said Chris Pavlovski, Rumble’s CEO, underscoring the deal’s focus on search and discovery.

Bottom line: The Dow’s advance and Russell’s outperformance contrasted with a softer Nasdaq, consistent with a market leaning toward defensive and domestically oriented exposure while digesting policy noise. With consumer strength still underpinning growth, investors continued to rotate rather than retreat, leaving the broader market little changed even as leadership shifted.