In a remarkable display of resilience and forward-looking optimism, U.S. equities marched higher on Friday to cap another winning week for Wall Street, despite ongoing political gridlock and a government shutdown that temporarily obscured the country’s economic dashboard.

The Dow Jones Industrial Average soared by 0.5%, briefly touching the 47,000 milestone before closing at a fresh all-time high. The S&P 500 barely inched upward but still achieved a new record close, while the tech-heavy Nasdaq Composite slid 0.3% after a late-day pullback in high-growth tech names like Tesla. Still, all three indexes posted more than 1% gains for the week, underscoring the market’s ongoing momentum.

AI Megadeals Fuel Investor Frenzy

Market enthusiasm was driven in large part by continued excitement around artificial intelligence, with several high-profile collaborations propelling sector shares to new heights. OpenAI again captured headlines, as fresh capital injections pushed its private valuation to a dazzling $500 billion, making the company the world’s most valuable startup. The momentum extended to industrial giants, with Hitachi announcing a transformative energy-focused partnership with OpenAI, and Fujitsu expanding its collaboration with Nvidia to accelerate the development of intelligent robots and AI-driven infrastructure.

These alliances highlight the growing interdependence between traditional industries and next-generation technologies. Nvidia, a perennial AI bellwether, saw its global influence widen as more companies seek to harness its GPUs and software to power everything from robotics to data centers.

Markets Shrug Off Government Shutdown

While political headlines loomed large, traders appeared unfazed by the third day of the U.S. government shutdown. Perhaps the most acute consequence was the delay of the September jobs report, a key barometer for the health of the American labor market. In the absence of official numbers, investors turned to an array of private indicators, which collectively signaled a sharp economic slowdown.

With employment and inflation data unavailable, Wall Street looked ahead, betting that diminishing labor market strength might prompt the Federal Reserve to cut rates again in the coming months. Private sector reports, including a notable pullback in hiring and a drop in job openings, suggested the post-pandemic recovery could be losing steam.

“Markets are skirting past Washington drama, focusing instead on corporate innovation and growth in transformative fields like AI and quantum computing,” noted one chief economist. Despite the lack of transparency, investors maintained a risk-on stance—evidenced by the S&P 500’s continued climb.

Sector Standouts: AI, Utilities, Pharma, and Crypto

Though tech stocks remain at the forefront of the rally, market leadership broadened during the week. Utilities and industrials, often seen as defensive plays, surged to all-time highs, underpinned by AI-driven upgrades to electrical grids and infrastructure. Utilities and industrials are now outperforming nearly every sector except tech and communications services, a notable shift reflecting ongoing capital rotation.

Pharmaceutical companies also notched their best week in more than a decade, highlighting investor appetite for non-tech growth amid market uncertainty. Meanwhile, Bitcoin and other cryptocurrencies rallied sharply, with Bitcoin climbing above $123,000 per token, and Ether surging past $4,500. Some analysts attributed the gains to seasonal tailwinds and risk-on sentiment as traditional data sets became temporarily inaccessible.

Economic Data: Flying Blind—and Betting on Rate Cuts

With the Bureau of Labor Statistics furloughed, Wall Street was left to estimate the labor market’s health using private inputs. Economists previously forecast about 50,000 jobs to be added in September, with unemployment steady at 4.3%. But now, delayed government data means more volatility and speculation.

Notably, the Institute for Supply Management (ISM) Services Index fell unexpectedly to 50% in September, the lowest since mid-2020 and a sign that business activity is stalling. Prices paid for inputs continued to rise, hitting levels nearing record highs and fueling concerns about “stickier-than-expected” inflation. The ISM’s employment index remained in contraction, though slightly improved, with corporate survey respondents reporting that AI investments are starting to boost productivity despite overall sluggishness.

Analysts now eye the upcoming Consumer Price Index (CPI) data, scheduled for mid-October. However, there is uncertainty over whether it will be released if the shutdown drags on. This data would serve as a critical guide for interpreting inflation trends and shaping Fed policy.

Corporate Highlights: Amazon, Netflix, Tesla, and More

• Amazon received renewed bullish analyst attention, with forecasts for 20%+ AWS cloud growth into 2026 even as global AI investments surge. Founder Jeff Bezos acknowledged an “AI bubble” but maintains the core technology revolution is real.
• Netflix stock dropped 5% this week, amplified by public criticism from Tesla CEO Elon Musk, who called for users to scrap their subscriptions.
• Tesla shares were volatile, with an early-week gain followed by a 5% decline after the expiration of key EV tax credits. However, analysts tout the company’s long-term AI-driven advantages in self-driving and mobility technologies.
• Quantum computing stocks like Rigetti and D-Wave roared higher after securing fresh commercial agreements and proving market demand for next-gen computing solutions, though the companies remain unprofitable and subject to wider volatility.

Broader Economic and Political Backdrop

The government impasse is expected to continue as partisan debates over health care subsidies and discretionary spending show few signs of resolution. President Trump’s continued threats to fire federal workers and defund programs in key swing states have added another layer of policy uncertainty—though markets so far have taken these threats in stride.

Elsewhere, geopolitical events added to volatility. A fire at a Chevron refinery briefly lifted oil futures as supply concerns returned, though overall energy markets posted their largest weekly losses since June.

Gold, meanwhile, surged to another all-time high of $3,906 per ounce, as investors sought havens in the face of data uncertainty and evolving rate expectations.

Outlook: A Market Poised Between Momentum and Risk

As the market heads into the fourth quarter of 2025, the balance between technological prowess and political dysfunction is defining the investing landscape. For now, AI-driven optimism and robust corporate investment are overpowering macroeconomic uncertainty and the absence of traditional data. But with the shutdown unresolved and inflation pressures persisting, the coming weeks could bring new volatility to both Main Street and Wall Street.

Investors and policymakers alike await the restoration of core economic data releases to properly gauge the health of the recovery. Until then, AI’s promise may continue to overshadow Washington’s stumbles.