Wall Street Hits Record Highs As Rate Cut Bets Offset Shutdown: This Week In Markets

Market Overview - Wall Street indices, including the S&P 500, Nasdaq 100, Dow Jones Industrial Average, and Russell 2000, reached record highs, driven by investor optimism and expectations of interest rate cuts [2][3] - The Bureau of Labor Statistics did not release the monthly jobs report due to the government shutdown, but private data indicated a softening labor market [2][3] Employment Data - The ADP Employment Report indicated the largest private-sector job loss in over two years, while the ISM Services PMI showed a fourth consecutive month of contraction in its employment component [3] - These employment indicators reinforced expectations for the Federal Reserve to lower its benchmark rate to 3.75%-4% at the upcoming October meeting [3] Pharmaceutical Sector - Pfizer Inc. announced a landmark deal with the Trump administration, committing to most-favored-nation pricing for U.S. Medicaid drug prices and avoiding tariffs on branded drugs for three years [4] - Pfizer's agreement includes a $70 billion investment in U.S. manufacturing and participation in a new government-backed drug discount platform [4] - Other healthcare stocks, including Eli Lilly & Co., Thermo Fisher Scientific Inc., Merck & Co. Inc., and Amgen Inc., experienced double-digit gains over the week [5] Technology Sector - The AI-driven tech rally continued, with NVIDIA Corp. achieving a market capitalization of $4.6 trillion, contributing to a total value of $21 trillion for the so-called Magnificent Seven tech giants [5] Automotive Sector - Michigan automakers showed mixed performance: General Motors Co. fell 3% despite doubling EV sales, while Ford Motor Co. rose 5% and Stellantis N.V. surged 14% after eight quarters of declining sales [7] - Year-over-year sales growth for GM, Ford, and Stellantis was reported at 8%, 8.2%, and 6%, respectively, in the latest quarter [7] Speculative Assets - Risk appetite extended to speculative assets, with Bitcoin climbing above $121,000, approaching its August highs [6]