Market Close — Stocks Edge Higher as Shutdown, Soft Jobs Data Steer Fed Bets

U.S. stocks finished modestly higher Wednesday as investors weighed a fresh government shutdown against softer private-sector hiring that bolstered hopes for easier Federal Reserve policy. The Dow Jones Industrial Average added 243.21 points to 36,441.1 (+0.09%), the S&P 500 rose 0.34% to 6,711.20, and the Nasdaq Composite gained 0.42% to 22,755.2. Small caps also advanced, with the Russell 2000 up 0.22% to 242.49.

The policy backdrop remained volatile. In dueling statements, the White House blamed Democrats for the shutdown, while congressional Democratic leaders called it a “Trump shutdown.” “After months of making life harder and more expensive, Donald Trump and Republicans have now shut down the federal government…” said Senate Democratic Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries in a joint statement. Meanwhile, Bloomberg reported that budget chief Russell Vought is preparing to swiftly dismiss federal workers; Press Secretary Karoline Leavitt described layoffs as “two days, imminent, very soon.” The administration also halted $18 billion for New York City infrastructure and targeted $8 billion in renewable projects, heightening the sense of fiscal brinkmanship.

Economic data skewed dovish. According to an AInvest summary of the ADP National Employment Report, private employers cut 32,000 jobs in September, and wage gains for job-changers cooled to 6.6%. With official BLS data delayed by the shutdown, traders leaned more heavily on the ADP print, interpreting the weakness as reducing pressure on the Fed to keep policy restrictive.

Geopolitics intersected with trade. On Truth Social, President Donald Trump wrote, “I WILL NEVER LET OUR FARMERS DOWN! … I’ll be meeting with President Xi, of China, in four weeks, and Soybeans will be a major topic of discussion.” The outreach tempered some growth worries and supported risk appetite at the margin.

In commodities, gold firmed to $3,892.00 (+0.49%) as investors sought a hedge against policy uncertainty, while crude oil slipped to $61.98 (–0.63%), reflecting softer demand expectations implied by the ADP report.

The day’s mix—policy gridlock, softer labor momentum, and hints of U.S.–China engagement—left equities grinding higher but still hostage to Washington. Until the shutdown ends and official data resume, markets are likely to trade headline-to-headline, with Fed-rate expectations swinging on every sign of growth or restrai