Nasdaq 100 and S&P500: Tech Stocks Waver as Shutdown Clouds Fed Outlook

Nasdaq Composite Hits Pause as Shutdown Blinds Market

The S&P 500 is slipping 0.36% to 6,716.12 as of 15:11 GMT Tuesday, with the Nasdaq down 0.58% at 22,808.21 and the Dow off 0.19% at 46,608.54.

Traders are flying blind as the government shutdown stretches into its second week, blocking key economic data and clouding the path forward for the Fed. While the rally has been fueled by AI enthusiasm and rate cut expectations, the lack of fresh economic signals is starting to test market confidence.

The September jobs report is delayed, inflation data is uncertain, and the Fed is left without the usual indicators it relies on to guide policy. Without those data points, the market is leaning hard on Fed commentary and sentiment-driven trades—at a time when valuations are already stretched.

Can This Rally Survive on Hype Alone?

What’s keeping the market from rolling over completely is still the same playbook: big tech strength, AI-driven momentum, and expectations that rate cuts are coming into view.

But with no confirmation from hard data, the risk grows that this rally is running on fumes. The Fed has consistently emphasized its data-dependent stance. Right now, there’s no data—and that’s a problem for both policymakers and traders trying to front-run them.

Which Sectors Are Flashing Signals?

As of mid-session, sector rotation leaned defensive. Utilities gained 0.52% to 458.26, and Financials rose 0.23% to 895.41.

Meanwhile, Energy dropped 0.74% to 678.56, and Consumer Discretionary fell 0.79% to 1,907.15, pointing to fading risk appetite.

With macro uncertainty rising, money is rushing into safer corners of the market.

Which Stocks Are Moving as We Approach the Mid-Session

AppLovin surged 8.5% to 636.90 after strong inflows and bullish order flow. PayPal gained 5.67% to 75.33 on reports of renewed cost-cutting initiatives.

AMD jumped 4.59% to 213.07 as traders continued piling into chip names tied to AI themes.

On the downside, MicroStrategy slid 5.79% to 338.85 as Bitcoin retreated, while Booking Holdings fell 3.41% to 5,235.16 after trimming its forward outlook.

What’s the Trade If the Shutdown Drags On?

The Senate failed again Monday to pass a funding bill that would keep the government open through November 21. The 60-vote threshold means at least eight Democrats would have to cross party lines—an outcome that currently looks unlikely.

President Trump claimed progress was being made, but Senate Minority Leader Chuck Schumer quickly pushed back, calling the statement “not true” on X.

With the political stalemate deepening, investors rotated into safe-haven assets, sending gold futures above $4,000 per ounce for the first time. In the absence of economic data, traders are now zeroing in on Wednesday’s Fed minutes and remarks from key officials including Michelle Bowman, Stephen Miran, and Neel Kashkari. In this data blackout, Fed commentary becomes the main trading cue.

The S&P 500 and Nasdaq remain within reach of all-time highs, but the market is now betting on Fed dovishness without confirmation from the underlying economy. If the shutdown continues and uncertainty builds, traders may be forced to reassess whether the rally still has legs—or if it’s time to fade it.

More Information in our Economic Calendar.