NEW YORK — U.S. stocks ended mixed on Friday, with the Nasdaq closing lower while the S&P 500 and Dow eked out modest gains, as investors digested a week marked by the longest federal government shutdown in history and concerns over stretched tech stock valuations. The Dow rose 74.80 points, or 0.16%, to 46,987.10, while the S&P 500 gained 8.48 points, or 0.13%, to 6,728.80. The Nasdaq Composite fell 49.45 points, or 0.21%, to 23,004.54.
Early losses were trimmed after reports of progress on the congressional impasse. Analysts said a resolution to the shutdown could boost sentiment, particularly amid high stock valuations. However, the shutdown has caused a blackout of official economic indicators, compounding investor uncertainty and affecting confidence, with the University of Michigan’s preliminary November Consumer Sentiment survey plunging to its lowest level in over three years.
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Tech stocks weighed heavily on the Nasdaq. Microchip Technology shares dropped 5.2% after forecasting quarterly net sales below estimates, while Tesla fell 3.7% despite approving a historic CEO pay package. Conversely, Expedia surged 17.6% following strong bookings from its business-to-business segment, while Block and Take-Two Interactive saw declines due to earnings misses and product delays.
Third-quarter earnings reporting is nearing completion, with 446 S&P 500 companies having reported so far. Of these, 83% beat expectations, and analysts forecast 16.8% year-on-year earnings growth for the S&P 500 in Q3, up from 8.0% growth last year. Market breadth was positive on the NYSE, with advancing issues outnumbering decliners by a 1.44-to-1 ratio, while the Nasdaq saw a narrower 1.1-to-1 ratio.
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Trading volume totaled 20.15 billion shares, slightly below the 20-day average. Investors continue to weigh a mixture of strong corporate earnings, economic uncertainty, and geopolitical developments, including U.S.-China tensions over rare earth exports, which could influence market direction in the near term.