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    S&P 500, Nasdaq open at record high as rate-cut bets offset shutdown concerns – Reuters

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    By Niket Nishant,Sukriti Gupta

    Copyright reuters

    S&P 500, Nasdaq open at record high as rate-cut bets offset shutdown concerns - Reuters

    SummaryCompaniesIndexes up: Dow 0.25%, S&P 500 0.13%, Nasdaq 0.25%Credit bureaus fall after FICO unveils new licensing modelTesla’s quarterly deliveries beat analysts’ estimates

    Oct 2 (Reuters) – The S&P 500 and the Nasdaq hit intraday record highs at market open on Thursday, on the back of renewed expectations for interest rate cuts, while traders brace for a data-light end to the week with few fresh catalysts.

    Investors have anchored their expectations to a dovish Federal Reserve, which has allowed them to brush aside uncertainty surrounding the U.S. government shutdown.

    At the heart of the Fed’s policy outlook is the labor market, a critical piece of its dual mandate. With the government shutdown creating a data vacuum, investors are relying more heavily on alternative sources.

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    “I think they will look at the fact that the trend in the jobs market continues to be weak, which is one of their mandates that they’re trying to defend right now,” said Art Hogan, chief market strategist at B. Riley Wealth.

    At 09:54 a.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 118.27 points, or 0.25%, to 46,559.37, the S&P 500 (.SPX), opens new tab gained 8.65 points, or 0.13%, to 6,719.85 and the Nasdaq Composite (.IXIC), opens new tab gained 56.62 points, or 0.25%, to 22,811.78.

    Earlier in the session, the S&P and the Nasdaq indexes hit their intraday record highs of 6,731.94 and 22,900.60, respectively.

    The tech (.SPLRCT), opens new tab sector, up 0.3%, was the biggest boost to the S&P 500. Nvidia (NVDA.O), opens new tab rose 0.8%, while Broadcom (AVGO.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab were up 1% and 1.7%, respectively.

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    The stocks catapulted the broader semiconductor (.SOX), opens new tab index to a record high, and helped boost the Nasdaq.

    Advanced Micro Devices rose after a report said Intel (INTC.O), opens new tab was in early talks to add the chipmaker as a foundry customer.

    The Industrials (.SPLRCI), opens new tab sector rose 0.4% on the S&P 500. Caterpillar (CAT.N), opens new tab hit a record high and was last up 2.4%.

    Consumer discretionary (.SPLRCD), opens new tab stocks fell 0.2%. Tesla (TSLA.O), opens new tab reversed early gains to fall 0.5% despite reporting third-quarter deliveries above analysts’ estimates.

    According to a report from global outplacement firm Challenger, Gray & Christmas, U.S. employers announced fewer layoffs in September but hiring plans so far this year were the lowest since 2009. It came a day after a weaker-than-expected ADP National Employment Report on Wednesday.

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    These reports are filling the gap left by the weekly jobless claims report, a key gauge of labor market health, which on Thursday became the first data casualty of the government shutdown.

    Traders have read the recent data as enough to push the Federal Reserve toward a 25-basis-point rate cut at its upcoming policy meeting.

    “The longer the shutdown lasts, the more the Fed will feel inclined to continue to cut rates,” Hogan said.

    In stocks, credit bureaus Equifax (EFX.N), opens new tab and TransUnion (TRU.N), opens new tab fell 8.4% and 11.4%, respectively, after FICO (FICO.N), opens new tab launched a program that could allow mortgage lenders get access to credit scores without relying on the bureaus. FICO surged 30.1% to top the benchmark index.

    Occidental Petroleum (OXY.N), opens new tab said it would sell its petrochemical division to Warren Buffett’s Berkshire Hathaway (BRKa.N), opens new tab for $9.7 billion. Shares of the oil and gas producer fell 4.2%.

    Advancing issues outnumbered decliners by a 1.3-to-1 ratio on the NYSE and by a 1.31-to-1 ratio on the Nasdaq.

    The S&P 500 posted 26 new 52-week highs and 7 new lows while the Nasdaq Composite recorded 90 new highs and 38 new lows.

    Reporting by Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Krishna Chandra Eluri

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    Niket NishantThomson ReutersNiket Nishant reports on breaking news and the quarterly earnings of Wall Street’s largest banks, card companies, financial technology upstarts and asset managers. He also covers the biggest IPOs on U.S. exchanges, and late-stage venture capital funding alongside news and regulatory developments in the cryptocurrency industry. His writing appears on the finance, business, markets and future of money sections of the website. He did his post-graduation from the Indian Institute of Journalism and New Media (IIJNM) in Bengaluru. EmailXLinkedin

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