US stocks reach record highs despite shutdown concerns

The Dow and S&P 500 ended the week at record highs, even as investors monitored potential government shutdown risks and the Federal Reserve’s rate-cut outlook. AI-driven tech stocks, particularly Nvidia, fueled strong market momentum, helping offset concerns over labor market cooling. While shutdown fears sparked headlines, historical trends suggest limited long-term economic impact, with markets typically rebounding once operations resume. Investor sentiment remains cautiously optimistic, favoring structural growth themes over short-term disruptions.