On Wednesday, the S&P 500 set a new record, rising to 6711 points just before the market closed. The daily gain was 0.34%. Earlier in the session, the index also hit an intraday high — all of this happened against the backdrop of the first US government shutdown in seven years.
Nasdaq Composite also added 0.42% and closed at 22,755.16. The industrial Dow Jones index rose by 43.21 points, or 0.09%, reaching 46,441, according to CNBC.
The administration of Donald Trump ordered an “orderly shutdown” of government agencies after another attempt to agree on temporary funding failed in Washington. This could affect the release of important macroeconomic statistics, which the Fed relies on for its decisions.
The Federal Reserve is already preparing for a second rate cut this year — expected to happen this month. Another could follow in December. But the lack of fresh data could deprive the central bank of key guidance.
Gold surges to record levels amid Fed rate cut expectations
Gold rose to $3950 per ounce on Wednesday, marking its fifth consecutive day of gains. Since the start of the year, the metal has already gained 46% — this could be its best year since 1979. The shutdown and the Fed’s policy shift have again fueled demand.
According to Bloomberg, in September, inflows into gold-backed ETF funds reached a three-year high. Additional support came from central bank purchases. The Fed’s return to a rate-cutting cycle only increased demand.
Silver also rose — to $47.82 per ounce, gaining 2.5% in a day. Less than 4% remains to its all-time high. Since the start of the year, the metal has risen by more than 60%. The growth is driven by the same macro factors as gold, as well as a supply shortage that has persisted for several years.
See also: World Liberty Fi wants to link real assets with the USD1 stablecoin
Both metals are reacting to instability in Washington, which is also pushing up the S&P 500 index. At the same time, traditional economic indicators remain frozen due to the government shutdown.
The history of shutdowns only strengthens traders’ confidence. For example, during the longest US funding suspension — from December 21, 2018, to January 25, 2019 — the S&P 500 rose by 10.43% in just 22 trading days. That’s an average of 0.47% per session.
A similar trend was observed in earlier years. In 1995, 1996, 2013, and 2018, the index also showed positive dynamics during shutdowns.
Intel shares rise amid talks with AMD
On Wednesday, Intel shares jumped by 7% after a report by Semafor. According to journalist Rohan Goswami, the company has started preliminary talks to manufacture chips for AMD at its own facilities.
Currently, AMD produces processors through TSMC, and it’s not yet clear how much production could be shifted. But even a limited deal would be a strong move for Intel Foundry‘s business.
Analysts believe such a contract would help Intel boost investment in its own technology development and show other manufacturers that its factories are ready to handle significant volumes.
See also: Wormhole launches reserve and updates tokenomics: betting on resilience
If the deal goes through, it would also signal that AMD is ready to cooperate with its main competitor. For now, talks remain at an early stage.
CEO Intel Lip-Bu Tan is actively restructuring the company. His initiatives are supported by Nvidia, SoftBank, and the US government, although Nvidia itself has not yet placed chip orders with Intel. Despite this, Intel shares have already risen by almost 77% since the start of the year.
Amid the shutdown, investors’ attention remains focused on the Fed. The morning ADP report added uncertainty, but markets are still expecting a rate cut in October and possibly another in December.
Due to the government shutdown, the Fed has no access to full statistics — the central bank is operating blindly. However, the stock market continues to rise. The question is, for how long.
