S&P 500 seesaws after hitting fresh record as U.S. government shutdown continues

The S&P 500 was relatively unchanged after reaching a new record on Thursday as investors tried to shrug off concerns tied to a U.S. government shutdown that had entered its second day.

The broad market index hovered around the flatline. It was up 0.3% at the day’s peak, reaching a fresh all-time intraday high. The Dow Jones Industrial Average climbed 48 points, or 0.1%, while the Nasdaq Composite rose 0.3% and had hit a new intraday record earlier as well. The tech-heavy index’s move was supported by a gain in Nvidia shares, which also reached an all-time high, as investors continued to pile into the artificial intelligence giant.

Weighing on sentiment, Treasury Secretary Scott Bessent told CNBC Thursday that gross domestic product may “see a hit” as a result of the current government shutdown. His comments heightened investors’ fears that U.S. economic performance will suffer more of a blow the longer the shutdown persists.

Hopes that the federal funding lapse would be brief and therefore limit any serious effects on the economy sent the three major U.S. stock indexes into the green Wednesday. The S&P 500 notched its 29th closing high of the year, finishing above the 6,700 threshold for the first time, after the index hit a new all-time intraday high earlier in the day. The Dow likewise saw a record close in the prior session.

The shutdown began after top Democrats and Republicans failed Tuesday to meet the deadline to agree on a deal that would keep the government funded. Lawmakers blamed each other for the stoppage as Democrats stayed firm on their demands to use the measure to extend health care tax credits for millions of Americans.