Stocks edged higher on Tuesday as Wall Street awaited progress in Washington over the ongoing US government shutdown, now entering its second week.
The S&P 500 and Nasdaq Composite each gained 0.1%, while the Dow Jones Industrial Average advanced 106 points, or 0.2%.
Expectations that the government would reopen on Monday were dashed after the Senate once again failed to pass a House funding bill that would have extended government operations through November 21.
The measure fell short of the 60 votes needed to advance, with the chamber largely split along party lines.
At least eight Democrats would need to join Republicans for the bill to move forward.
President Donald Trump continued to place responsibility on Democrats for the impasse.
In a Truth Social post on Monday evening, he wrote that he was “happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.”
Earlier that day, Trump had suggested discussions with Democrats were “going on right now” and could “lead to very good things… with regard to healthcare.”
That claim was later rejected by Senate Minority Leader Chuck Schumer, who wrote on X that “THIS ISN’T TRUE.”
He added that Democrats were willing to negotiate on healthcare reforms “if Republicans are finally ready to sit down and get something done for American families.”
The disruption, now in its seventh day, has delayed key economic releases, including the September jobs report expected on Friday.
The lack of fresh data limits the information available to the Federal Reserve ahead of its next policy decision, at a time when concerns about inflation and labour-market resilience remain elevated.
With limited economic signals, investors are expected to focus on Wednesday’s release of the Fed’s September meeting minutes and remarks from several officials this week.
Tuesday’s gains followed a strong session on Monday, when optimism over potential merger activity and growing confidence in a forthcoming Fed rate cut lifted equities to new highs.
Sentiments remain mixed on Tuesday
Market sentiment on Tuesday reflected a tug-of-war between optimism surrounding artificial intelligence and concerns over the prolonged US government shutdown, now in its second week.
The delay in key economic data releases has deepened uncertainty over the Federal Reserve’s next moves on interest rates, keeping investors cautious.
European benchmarks traded slightly higher despite ongoing political instability in France.
Asian markets ended mixed, underscoring the fragile global mood.
The US Dollar Index strengthened further, supported by declines in the euro and the yen.
Yields on 10-year Treasury notes edged higher, signalling continued pressure in bond markets.
Crude oil benchmarks hovered near unchanged levels, suggesting a wait-and-watch approach among energy traders.
Gold futures for December delivery hit a record high above $4,000 per ounce, buoyed by persistent safe-haven demand and growing expectations of rate cuts.
In the digital asset space, sentiment remained upbeat as Bitcoin surged past $126,000, marking a new all-time high and extending the broader crypto market’s rally.
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