NEW YORK, Nov 7 – Wall Street wrapped up a turbulent week with mixed results on Friday, as optimism grew over potential progress toward ending the nation’s longest-ever federal government shutdown. The Dow Jones Industrial Average and S&P 500 managed to finish slightly higher, while the Nasdaq slipped under pressure from declining technology shares.
Throughout much of the day, all three major indexes traded lower amid lingering economic worries and investor fatigue from weeks of political deadlock. Late in the session, however, reports suggesting a possible bipartisan breakthrough in Congress helped lift market sentiment, leading to modest gains in the Dow and S&P 500.
“Ending the shutdown would definitely lift investor confidence, particularly given how high market valuations already are,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis. “Markets are at record levels, and any reduction in uncertainty provides room for cautious optimism.”
Despite the late rebound, all three benchmarks posted weekly declines, with the Nasdaq logging its sharpest percentage drop since early spring. Analysts pointed to investor unease over inflated valuations of artificial intelligence-linked companies, which have driven much of the market’s rally in recent months.
“Every bull market experiences periods of consolidation,” Sandven noted. “Pullbacks like this one are not unusual and can even be healthy if they allow prices to reset.”
The ongoing shutdown also appeared to be weighing heavily on consumer confidence. According to preliminary data from the University of Michigan, consumer sentiment in early November dropped to its lowest level in over three years. Respondents’ view of current conditions sank to the most pessimistic reading in the survey’s history, reflecting widespread concern about household finances and job stability.
Since November 2024, when President Donald Trump began his second term, overall sentiment has fallen nearly 30%. Economists warn that prolonged political gridlock could erode consumer spending, a key driver of the U.S. economy.
The federal shutdown has also disrupted the flow of key government data, leaving policymakers and investors with limited visibility into the health of the economy. “Flying blind without official economic indicators is creating additional uncertainty,” said Ryan Detrick, chief market strategist at Carson Group in Omaha. “We know earnings have been robust, but weakness in housing and signs of a softening labor market are giving investors reason to pause.”
Detrick added that the market’s current volatility reflects a “sell first, analyze later” mindset, with traders reacting quickly to any sign of economic fragility.
Beyond domestic concerns, developments in global trade continued to draw attention. Reports from Beijing suggested that China is moving forward with a new rare earth licensing program aimed at streamlining shipments of critical minerals. While the move could ease some supply constraints, it falls short of U.S. expectations for broader relief from export restrictions.
At the close of trading, the Dow Jones Industrial Average (.DJI) rose 74.80 points, or 0.16%, to 46,987.10. The S&P 500 (.SPX) gained 8.48 points, or 0.13%, finishing at 6,728.80. Meanwhile, the Nasdaq Composite (.IXIC) dropped 49.45 points, or 0.21%, ending at 23,004.54.
Earnings season continued to unfold, with results from most major companies already in. Out of 446 S&P 500 firms that have reported third-quarter results, approximately 83% have exceeded profit expectations. Analysts now forecast that overall S&P 500 earnings grew by 16.8% year-over-year for the third quarter, a sharp improvement from the 8% growth estimated earlier in the season.
Among individual stocks, Microchip Technology fell 5.2% after issuing a disappointing quarterly sales outlook, citing slower demand in the semiconductor sector. Tesla shares declined 3.7% after shareholders approved a record-breaking $1 trillion pay package for CEO Elon Musk, the largest in corporate history. Despite the vote of confidence, some investors voiced concerns about the company’s high valuation and slowing growth prospects.
On a brighter note, Expedia Group surged 17.6% after raising its annual revenue forecast. The travel company reported strong performance in its business-to-business services and a recovery in international bookings.
Other major movers included Block Inc., which tumbled 7.7% after missing profit expectations for the third quarter, and Take-Two Interactive, which dropped 8.1% following news that the release of its highly anticipated video game Grand Theft Auto VI would be delayed until November 2026.
Market breadth showed modest strength. Advancing issues outnumbered decliners by a 1.44-to-1 ratio on the New York Stock Exchange, while the Nasdaq saw a narrower 1.1-to-1 ratio of advancers to decliners. On the NYSE, 97 stocks hit new 52-week highs and 195 reached new lows. The S&P 500 recorded 14 new highs and 14 new lows, while the Nasdaq posted 43 new highs and 323 new lows.
Trading volume on U.S. exchanges totaled 20.15 billion shares, just below the 20-day average of 20.77 billion.
As the week ended, investors were cautiously hopeful that Washington’s progress toward resolving the shutdown could stabilize markets in the days ahead. Still, analysts warned that volatility is likely to persist until a firm agreement is reached and fresh economic data provides a clearer picture of the nation’s growth trajectory.