Wall Street Ends Winning Week With Records as AI Momentum, Energy Stocks Lift S&P 500 and Dow Despite Shutdown Uncertainty

Published: October 4, 2025, 16:00 EDT

U.S. stocks closed out the week on a strong note Friday, extending record highs despite concerns over government shutdown delays and signs of uneven economic growth. The S&P 500 secured its seventh gain in the past nine weeks, while the Dow Jones Industrial Average added to its rally.

Fueled by optimism in artificial intelligence investments and steady performances from key sectors, Wall Street largely shrugged off political uncertainty and mixed economic data.

S&P 500 and Dow Continue Record Streak

The S&P 500 rose less than 0.1%, finishing at 6,715.79 points, capping another week of gains. The Dow Jones Industrial Average climbed 238.56 points, or 0.5%, to 46,758.28, while the Nasdaq composite slipped 0.3% to 22,780.51 after giving up early gains.

Both the S&P 500 and Dow set new all-time highs on Thursday, highlighting investor confidence despite broader economic concerns. The Nasdaq, heavily weighted with technology companies, faced pressure after several key stocks reversed intraday advances.

Government Shutdown Delays Key Economic Data

Typically, the first Friday of the month brings the closely watched U.S. jobs report, which provides critical insights into employment trends and unemployment rates. However, the ongoing U.S. government shutdown, now in its third day, delayed the release of the report along with other key economic updates, including weekly jobless claims.

Economists note that past shutdowns have not significantly harmed financial markets or the economy, but the current political standoff has added a layer of uncertainty. President Donald Trump has suggested the possibility of mass federal worker layoffs, though analysts caution that such threats may not materialize.

For Wall Street, the most important factor remains whether the labor market is cooling enough to encourage the Federal Reserve to maintain interest rate cuts, a trend that has supported market gains this year.

Artificial Intelligence Boosts Market Optimism

Investor enthusiasm around artificial intelligence (AI) remained one of the dominant forces behind Wall Street’s momentum. The sector received another boost after Hitachi announced a memorandum of understanding with OpenAI, strengthening ties between Japan’s industrial powerhouse and the U.S.-based AI leader.

The news followed earlier agreements between OpenAI and South Korean firms, which drove share prices higher in Asian markets. In Tokyo, Hitachi’s stock surged 10.3%, helping lift Japan’s Nikkei 225 index by 1.9%.

While excitement about AI continues to fuel record-setting rallies, analysts have begun warning of a possible bubble risk given the rapid pace of investment and speculation. Nvidia, seen as a leading stock in the AI boom, slipped 0.7% Friday after erasing earlier gains.

Sector Winners and Losers

The market saw a mix of gains and losses across industries. Applied Materials dropped 2.7% after warning it expects a $110 million revenue hit in Q4 due to new U.S. Commerce Department restrictions on exports to some Chinese customers.

In contrast, energy stocks provided strength. Exxon Mobil gained 1.8%, while Diamondback Energy advanced 3% as crude oil prices rebounded from earlier losses this week. Oil markets had been pressured by concerns of oversupply relative to demand, but prices stabilized by Friday.

Entergy rose 1.9% after announcing its Arkansas operations will supply electricity for Google’s planned $4 billion investment in the state, including a new data center project.

Global Markets and Treasury Yields

Markets overseas closed mixed. In Europe, major indexes ended with varied results, while Asia saw stronger performances, led by Japan’s rally.

In the U.S. bond market, the yield on the 10-year Treasury note inched up to 4.12%, compared with 4.10% on Thursday, reflecting steady investor demand for government debt despite uncertainty over the shutdown.

Economic reports released Friday showed mixed signals from the services sector. Data from the Institute for Supply Management suggested growth was stalling in industries such as healthcare and real estate, while S&P Global reported modest expansion.

A Market Balancing Growth and Caution

Wall Street’s latest streak underscores investor confidence in the resilience of corporate earnings and the promise of new technologies, particularly AI. Yet risks remain, from political gridlock in Washington to questions about whether the Federal Reserve’s policies can achieve a soft landing for the economy.

As the new week approaches, investors are expected to continue weighing technology-driven optimism against macroeconomic challenges, with global markets closely watching developments in both the U.S. economy and international trade.