Stocks mostly climbed Friday, with two major indexes notching fresh records.
The Dow industrials climbed 0.5% to a new all-time high. The S&P 500 rose by less than 0.1%, just barely cinching a new record close, while the Nasdaq Composite slipped.
Investors have generally shrugged off the recent government shutdown. But the strength in both stocks and bonds is starting to worry some—particularly the fervor around artificial intelligence. Goldman CEO David Solomon, speaking at a conference in Italy on Friday, said he wouldn’t be surprised by a drawdown in the next year or two.
“Markets run in cycles, and whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential,” he said.
Chip stocks, including Broadcom, Micron and TSMC, rose. Artificial-intelligence enthusiasm has helped lift markets to record highs. Some investors have fretted that a potentially overheated market has rested too heavily on crowded AI trades. Others note that earnings growth at large tech companies is still robust.
“It’s normal to see stretched valuations and periods of increased concentration when the economy is transforming,” said Nancy Tengler, chief investment officer at Laffer Tengler Investments.
The three main U.S. indexes all closed at fresh peaks Thursday. The Dow led the way Friday, rising more than 200 points behind gains in UnitedHealth and Caterpillar.
The September jobs report, originally slated for this morning, is delayed due to a government shutdown. Traders have raised bets on a lengthy stoppage. In an extended closure, the Federal Reserve may have to rely on nongovernment data ahead of its October rate-setting meeting.
Meanwhile, President Trump is considering providing at least $10 billion in aid to U.S. farmers as the agriculture sector warns of economic fallout from his tariffs, The Wall Street Journal reported.
Silver and platinum futures headed for their longest weekly winning streaks in years. Silver is on a seven-week run of gains, the most since August 2020. Platinum has climbed for nine consecutive weeks, its longest such stretch since May 2006.
Five of the Magnificent Seven stocks fell.
Small-caps closed at new highs, with the Russell 2000 index of smaller stocks notching a new record.
