U.S. Stocks Struggle at Record Highs As Federal Government Shutdown Looms

Barry Adams
23 Sep, 2025
New York City

Benchmark indexes in New York edged slightly lower on Tuesday, and investors continued to pile into artificial intelligence trades. 

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% amid ongoing geopolitical and U.S. trade policy uncertainties.

Popular benchmark indexes extended the five-month rally, and the indexes reached new record highs after the president backed down from his threat of sky-high tariffs.

However, hundreds of thousands of businesses are at or near breaking point because of the tariff whiplash. 

The Trump administration has kept elevated tariff rates for India, China, Brazil, Canada, and Mexico and imposed punitive fees for work visas. 

Moreover, the U.S. federal government is heading for a shutdown at the end of the month after the Senate rejected temporary financing proposals by the Republican and Democratic lawmakers. 

The extended federal government shutdown could affect payment to employees, contractors, military staff and soldiers, and social security benefits.

 

U.S. Stock Movers 

Nvidia Corp. jumped 3.9% to $183.61 after the chipmaker announced its plan to invest as much as $100 billion in OpenAIfor the construction of data centers. 

Electric power companies traded higher as the rising demand from the artificial intelligence-driven data centers fueled enthusiasm. 

Constellation Energy Corp. advanced 3.9% to $347.12, Vistra Energy added 3.2% to $217.92, and Oklo Inc. soared 3.8% to $140.30. 

Firefly Aerospace plunged 9.6% to $44.75 after the spacecraft vehicle builder reported a wider loss and a decline in revenue in its fiscal second quarter. 

AutoZone Inc. decreased 2.9% to $4,000.0, and the specialty retailer reported financial results for the fiscal fourth quarter ending on August 30.

Net sales declined 0.6% to $6.2 billion, net income fell to $837.0 million compared to $902.2 million, and diluted earnings per share decreased 5.6% to $48.71 from $51.58 a year ago, respectively.

Overall, same-store sales increased 4.5%, driven by a 4.8% rise at domestic stores and 2.1% at international locations.