Wall Street is currently holding its breath, but honestly, it feels more like a collective shrug. If you’ve been looking at your portfolio today, you might be wondering why the screen isn't a sea of red. We are officially on day two of a U.S. federal government shutdown, and yet, the S&P 500 and the Nasdaq just hit new record highs. It's weird, right? You’d think a shuttered government would send investors running for the hills, but the vibe on the floor is surprisingly "risk-on."
Basically, the stock market news today October 2 2025 is dominated by a bizarre paradox: we have a massive data blackout because the government isn't publishing its usual reports, yet tech stocks are partying like it's 1999. The Nasdaq Composite climbed 0.4% to close at 22,755.16, while the S&P 500 edged up 0.3% to a record 6,711.2. Even the Dow managed to eke out a 0.1% gain.
The Shutdown Data Blackout
Here’s the thing most people are missing. Because the government is closed, we didn't get the typical weekly jobless claims report this morning. Investors are flying blind. Usually, these numbers are the "north star" for the Federal Reserve, but right now, everyone is forced to use "alternative data."
We did get the ADP private payrolls report, and it wasn't pretty. Private companies added way fewer jobs than expected in September—actually, ADP reported a loss of 32,000 jobs. Normally, that would freak people out. Today? It just convinced everyone that the Fed has to keep cutting interest rates. Bad news for the economy is becoming good news for your brokerage account because it means cheaper money is on the way.
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AI is Still the Only Story That Matters
If you want to know why the Nasdaq is hitting records while federal workers are being furloughed, look at OpenAI. They just dropped a bombshell announcement about a partnership with South Korean giants SK Hynix and Samsung. They're calling it the "Stargate" AI infrastructure project.
The scale is kind of hard to wrap your head around. We're talking about massive data centers that need their own power plants. This sent a lightning bolt through the semiconductor sector.
- Intel (INTC): Jumped 3.8%. There are whispers that AMD might actually start using Intel’s foundries to make chips. Talk about "hell freezing over."
- Nvidia (NVDA): Crept up another 1% to hit a fresh all-time high. It feels like this stock doesn't know how to go down anymore.
- Broadcom (AVGO): Up 1.5% as they continue to be the "quiet" winner of the custom AI chip race.
The FICO Bombshell and the Credit Bureau Bloodbath
One of the wildest moves today didn't happen in tech. Fair Isaac Corp (FICO) basically decided to choose violence. They announced a new model that allows them to sell credit scores directly to mortgage lenders, effectively cutting out the middleman.
Who's the middleman? The big credit bureaus.
The reaction was instant and brutal. Equifax (EFX) shares cratered 8.5%, and TransUnion (TRU) fell nearly 11%. Meanwhile, FICO stock soared 18%, making it the single best performer in the S&P 500 today. If you're holding the traditional credit bureaus, today was a "look away from the screen" kind of day.
Buffett's $10 Billion Flex
You can't talk about today's market without mentioning the Oracle of Omaha. Warren Buffett’s Berkshire Hathaway just confirmed a $9.7 billion cash deal to buy the petrochemical division of Occidental Petroleum (OXY).
It’s a classic Buffett move. While everyone else is obsessed with AI agents and smart glasses (Apple is reportedly ramping up its AI glasses project today, by the way), Buffett is buying a company that makes chemicals for plastics and pipes. Occidental shares actually fell about 7% on the news—likely because the market was hoping for a full buyout of the whole company, not just one division.
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What’s Happening Globally?
While the U.S. is dealing with its own political theater, the rest of the world isn't standing still.
- Japan: The Nikkei 225 is smashing records, breaking 52,000 points. They just elected a new Prime Minister, Sanae Takaichi, and the market seems to love the stability she represents.
- China: A bit of a different story. The MSCI China index fell nearly 4% as new tariff fears started to swirl again.
- Gold: The "fear trade" is still alive. Gold futures hit a record intraday high of $3,923.30 before settling back down. People are buying bullion as a hedge against the government shutdown lasting longer than a few days.
The "Hidden" Losers: Tesla and Energy
You’d think record delivery numbers would be a win, but Tesla (TSLA) dropped 5.1% today. They delivered 497,000 vehicles in Q3—a record—but the "whisper number" on Wall Street was even higher. Plus, there’s a lot of talk that people rushed to buy cars in September because federal EV subsidies are about to expire. Investors are worried Q4 is going to be a ghost town for Tesla.
Renewable energy also took a hit. AES Corp (AES) fell 7%. There were rumors that BlackRock was going to buy them, but those talks seem to have cooled off. In this market, if you aren't actively building an AI data center, investors sort of lose interest.
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How to Handle This Mess
Looking at the stock market news today October 2 2025, it’s easy to get caught up in the hype of new records. But honestly, the "narrowness" of this rally is a bit scary. Only about half of the sectors in the S&P 500 were actually green today.
If the government shutdown drags on for more than two weeks, that "shrug" from investors might turn into a "shudder." Without official labor data, the Fed is flying blind for their next meeting. If they miscalculate and don't cut rates enough, the high-flying tech stocks will be the first to drop.
Actionable Steps for Your Portfolio:
- Check your "Magnificent 7" exposure. These stocks now make up 36% of the S&P 500. If you’re in an index fund, you’re more concentrated in tech than you probably realize.
- Watch the 10-year Treasury yield. It’s hovering around 4.0%. If it starts spiking, it’s going to put a ceiling on how much higher these tech stocks can go.
- Don't panic about the shutdown. History shows that shutdowns are usually "non-events" for the market in the long run. The 2018-2019 shutdown lasted 35 days, and the market ended up higher.
- Keep an eye on the "Second Wave" of AI. The first wave was the chip makers (Nvidia). The second wave is the infrastructure (Sterling Infrastructure, STRL, is up big today) and the software (Palantir).
The market is currently betting on a "soft landing" and a short shutdown. As long as the AI hype train stays on the tracks, the record-breaking run might have some legs left. Just keep your seatbelt fastened—without government data to guide the way, the next few weeks are going to be a bumpy ride.
Next Steps for Investors:
Review your current asset allocation to ensure you aren't over-leveraged in semiconductors after today's rally. If you have significant holdings in consumer credit bureaus, consider the long-term impact of FICO’s new direct-to-lender model on their revenue streams. Finally, set price alerts for gold at the $4,000 mark, as breaking that psychological barrier could signal a deeper shift toward defensive positioning.