Wall Street’s major indices closed at record highs on Wednesday, supported by broad sector gains and investor confidence that the US government shutdown will be short-lived. Market participants largely brushed aside both the first day of the shutdown and weaker-than-expected labour data. The S&P 500 advanced 0.30%, the Nasdaq 100 climbed 0.50%, and the Dow Jones Industrial Average added 43 points. Healthcare stocks led the rally, offsetting concerns over the softer macroeconomic backdrop. The ADP National Employment Report showed a surprise decline of 32 000 private-sector jobs in September, underscoring signs of a cooling labour market. Meanwhile, factory activity contracted for the seventh consecutive month, reinforcing concerns about a slowdown in US manufacturing. Still, optimism that the shutdown’s economic effects will be contained, together with sector strength, particularly in healthcare, helped sustain upward momentum in equities.

Across the Atlantic, European stocks also reached record territory. The STOXX 50 ended the session at 5 589, while the broader STOXX 600 rose to 565, both closing at all-time highs. Pharmaceutical shares drove much of the advance, buoyed by relief that President Donald Trump’s proposed 100% tariffs on branded drugs may be less onerous than initially feared. Market sentiment improved further after Pfizer reached an agreement with the US administration to provide patients with discounted prescription drugs through a newly established federal website.

In South Africa, the FTSE/JSE All Share Index gained 1.31%, extending its positive run. Local markets were bolstered by encouraging manufacturing data and a weaker US dollar. The Absa Purchasing Managers’ Index (PMI) rose to 52.2 in September, up from 49.5 in August, marking its highest level since October 2024. The reading indicated renewed expansion in the manufacturing sector, though it was only the second instance of growth recorded this year.

Asian markets presented a mixed picture. Japan’s Nikkei 225 dropped 0.85% to 44 551, while the broader Topix slipped 1.37% to 3 095, extending recent declines. Investor sentiment remained cautious as economic indicators painted a conflicting outlook. On one hand, business confidence among large manufacturers in the third quarter reached its strongest level since late 2024. On the other, weak retail sales and subdued industrial production highlighted ongoing economic challenges, compounded by uncertainty over US trade policies.

In commodities, gold traded firmly above $3 870 per ounce, holding near record highs. The precious metal benefited from safe-haven demand amid the government shutdown and an unexpected decline in private employment, with the ADP report showing job losses contrary to expectations for a 50 000 gain.