The Dow Jones Industrial Average rose to fresh heights on Wednesday, extending its winning streak as optimism built around a potential resolution to the record-breaking US government shutdown.
The 30-stock index added 349 points, or 0.73%, hitting a new intraday high during the session.
The S&P 500 gained 0.04%, while the Nasdaq Composite slipped 0.34%, reflecting ongoing volatility in technology shares.
Investors continued to monitor developments in Washington, where the House of Representatives is expected to vote soon on a spending bill that could reopen the federal government.
The Senate approved the measure earlier in the week, setting the stage for a potential end to the funding standoff that has weighed on market sentiment in recent weeks.
Financial stocks drive Dow’s outperformance
The Dow’s gains were powered by a surge in financial names, with Goldman Sachs, JPMorgan Chase, and American Express all reaching record highs during the session.
The rally extended across the broader banking sector, with Morgan Stanley, Wells Fargo, and Bank of America also advancing.
Economically sensitive stocks, such as Caterpillar, also moved higher as investors rotated into sectors expected to benefit from an improving economic outlook.
The shift highlighted renewed confidence in traditional financial and industrial firms as Treasury yields eased and market participants positioned for stability.
The strength in bank shares came even as Treasury yields declined, a move that typically weighs on financial margins but in this case reflected expectations of easing macro uncertainty.
Analysts noted that the combination of moderating yields and progress on the shutdown front supported appetite for cyclical sectors tied to growth.
Tech volatility and sector divergences
While financials led the advance, the technology sector remained volatile. Advanced Micro Devices (AMD) jumped 9% after issuing robust long-term growth targets at its Financial Analyst Day, including forecasts that its data center revenue could grow 60% annually over the next three to five years.
However, other major tech names such as Oracle and Palantir Technologies traded lower amid continued concerns that valuations may be stretched following recent gains.
The divergence between sectors was evident throughout the week.
On Tuesday, the Dow surged more than 550 points, while the Nasdaq declined.
The health care sector also stood out as a top performer, with companies such as Eli Lilly and Johnson & Johnson leading gains as investors sought lower-valuation plays within defensive industries.
Corporate movers
Several individual stocks saw notable moves on Wednesday following earnings reports and corporate updates.
Alkermes fell 7% after releasing results from its Phase 2 trial for its narcolepsy drug ALKS 2680.
While the company plans to advance the treatment to Phase 3, higher or split doses may be required for effectiveness.
RXO rose 4%, extending gains from the previous session after a Morgan Stanley upgrade.
GlobalFoundries declined over 3% despite posting better-than-expected third-quarter earnings of 41 cents per share on $1.69 billion in revenue.
Nextracker, recently rebranded as Nextpower, dropped 7% even as it projected 2030 revenue of up to $5.6 billion and reaffirmed its 2026 outlook.
BILL Holdings and Clearwater Analytics gained 11% and 9%, respectively, following reports that both companies are exploring potential sales.
On Holding surged 18% after raising its forward guidance for the third consecutive quarter, while BigBear.AI advanced 14% after announcing its acquisition of generative AI platform Ask Sage.
Other notable movers included Alcon (+4%), Sony (+3.6%), Oklo (+5.5%), and Circle Internet (–11%), with the latter sliding despite reporting earnings and revenue that exceeded expectations.
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