Markets mixed as US shutdown drags on

The S&P 500 ended little changed on Friday, while the Dow Jones continued its record-setting streak, climbing 240 points to close at 46 758 after briefly topping 47 000 during the session. The Nasdaq, however, dipped 0.30% as the US government shutdown entered its third day. Tech giants dragged the market lower, with Palantir sliding 7.50%, and Tesla and Nvidia down 1.40% and 0.70%, respectively. The ongoing shutdown delayed the release of key economic data, including the September jobs report, leaving investors reliant on private data that hinted at a cooling labour market but reinforced expectations for a Fed rate cut later this month. Despite the uncertainty, the S&P 500 gained 1.10% for the week, the Dow rose 1%, and the Nasdaq advanced 1.30%.

In South Africa, the rand firmed to R17.23 against the dollar, supported by stronger gold prices and improving private sector performance. The S&P Global PMI showed business activity expanding for a fifth straight month in September, though optimism for the year ahead hit its lowest since mid-2021 amid ongoing economic and political concerns. The JSE Top-40 index closed up 1.60%.

Across Europe, stocks ended the week on a strong note, with healthcare and luxury names lifting the STOXX 50 and STOXX 600 to new records. Gains in Sanofi, Novo Nordisk, Merck, and UCB followed signals from the US administration that tariffs on pharmaceuticals may be softer than expected. In Asia, Japan’s Nikkei jumped 1.85% to a fresh record high as AI enthusiasm drove chipmakers higher.

On the commodities front, WTI crude rose 0.70% to $60.90 per barrel after four straight days of losses, even as it recorded a steep 7% weekly drop. Meanwhile, gold climbed to $3 875 per ounce just shy of Thursday’s all-time high marking its seventh consecutive weekly gain amid safe-haven buying and dovish Fed expectations.