Stock market news: S&P 500 extends rally as shutdown delays jobs report

The U.S. stock market extended its rally on Friday as Wall Street continued to downplay the government shutdown and as a wave of AI deals added further momentum.

The Dow Jones Industrial Average added 180 points, and the benchmark S&P 500 hovered near its latest all-time high with a 0.28% uptick. Meanwhile, the tech-heavy Nasdaq Composite gained 0.25%, and the small-cap index, the Russell 2000, added 0.22%.

Gains across equities aside, the crypto market has also recorded a significant surge, led by Bitcoin (BTC). Spot gold also remained near record highs.

US stock market news: jobs report delayed

Friday, Oct. 3, was a highly anticipated date until the U.S. government entered a shutdown and put the expected release of the September jobs report in jeopardy. As such, the market has largely not cracked after the Bureau of Labor Statistics failed to release the key monthly employment report.

While the jobs data represent a metric that policymakers, including the Federal Reserve, closely watch, its delay has put more weight on the recently released ADP private payrolls report. The private jobs data further signaled a slowdown in the U.S. labor market.

In September, the private sector saw a 32,000-job decline in hiring.

Analysts say stock market in “manic” zone

The S&P 500 led the intraday gains after yet another march to a new high.

The index has hit a new record 27 times since June. With the stock market showing no signs of an immediate slowdown, market experts say investor greed is pushing the major indexes deep into a “manic” zone.

Bloomberg reported on Friday that a sentiment gauge shows stocks have rallied into “a manic” zone. This zone signals Wall Street has stretched its exuberance.

However, analysts say investors continue to bet on more gains and are shrugging off would-be signs of a top. Despite the government shutdown and related developments, investors are betting on the stock rally to have another leg up.

Investors bet on AI surge

Artificial intelligence related deals, including one that has OpenAI’s valuation at $500 billion to become the world’s most valuable startup, have buoyed bulls. Nvidia, Intel, Hitachi, and Fujitsu are some of the companies involved in the latest AI deals, with these developments dominating stock market news headlines on Friday.

Joe Gilbert, a portfolio manager at Integrity Asset Management, sees the rally as a “tsunami” that bears cannot stop at the moment. Investor bets on AI trades, already at a new high, will likely soar if the Federal Reserve lowers interest rates at its next meeting.