US Stocks Steady Amid Government Shutdown, Fed Cut Prospects

U.S. Treasury yields dropped and stock futures edged higher following weak jobs data indicating a labor market slowdown, which increased expectations for Federal Reserve interest rate cuts later this month. Despite ongoing concerns about a government shutdown, which has delayed key economic data releases such as the September jobs report, investors remained optimistic, buoyed by sectors like healthcare and deals such as Pfizer's agreement with the White House to lower Medicaid drug costs. The government shutdown, driven by disputes over healthcare subsidies, continues to complicate the economic outlook, but some analysts believe the Fed has enough private data to proceed with a rate cut regardless of the delayed official reports. Major indexes showed resilience, with the Dow Jones and S&P 500 hitting record highs earlier in the week, though market volatility remains amid shutdown uncertainties. Additionally, certain stocks saw significant moves, including gains for Nvidia-partnered UiPath and Wolfspeed after emerging from bankruptcy, while others like Unity Software experienced declines. Overall, the market is balancing cautious optimism on monetary policy and economic data against political challenges posed by the government funding impasse.