The S&P 500 closed at a record 6,753.72 and the Nasdaq hit 23,043.38 on Wednesday.

The S&P 500 shattered its own record on Wednesday, ending the day at 6,753.72, its highest close ever. The Nasdaq Composite also broke records, closing at 23,043.38, as tech stocks rebounded from Tuesday’s stumble.

This came just a day after the S&P 500 ended a seven-day win streak, dragged down by Oracle’s weak outlook that rattled nerves about how long the AI frenzy can hold up. At the same time, the U.S. government shutdown moved into its eighth day, with zero progress on any funding deal.

Gains were powered by a broad lift in tech, utilities, and industrials; all three sectors posted new closing highs. The S&P 500 rose 0.58%, while the Nasdaq surged 1.12%. The Dow Jones Industrial Average barely moved, slipping by just 1.20 points to close at 46,601.78.

The market’s calm reaction to political gridlock and mixed Fed signals is raising eyebrows, but for now, bulls aren’t flinching.

Fed split on next move after first rate cut of 2025

The Federal Reserve’s September meeting minutes were released Wednesday, but markets didn’t care much. The central bank had already made headlines by cutting rates for the first time this year, and the minutes showed that the committee is far from unified. Some members want to cut more, some don’t. That’s about as clear as it gets.

Meanwhile, Nvidia bounced back strong. Its stock climbed 2% after CEO Jensen Huang told CNBC that demand for computing power “has gone up substantially” over the last six months. Huang also confirmed that Nvidia is helping fund Elon Musk’s new AI company, xAI, saying he’s “super excited about the financing opportunity they’re doing.”

The recovery came after Nvidia dipped earlier this week alongside Oracle, which reported lower-than-expected cloud margins and warned it was losing money on deals renting out Nvidia’s chips.

This brief slide had analysts sweating about a possible AI bubble. The Oracle news, combined with Nvidia’s dip, looked too familiar, almost like 1999 déjà vu.

But voices like Ross Mayfield, strategist at Baird, pushed back. “There needs to be demand for the chips,” he told CNBC. “The demand still being there – and Nvidia is obviously in the best position in the world to comment on that – I do think is reassuring that the level of spending capex isn’t completely circular.”

Mayfield also warned that tech could still face rough waters. “Even if you look at the late-’90s, we had big corrections in the Nasdaq every single year,” he said. “There could be several corrections, big corrections in tech stocks, you know DeepSeek-type moments, before we ultimately get to some sort of bull market top. I just don’t really feel that we’re close there.”

While stocks are flying high, Washington remains frozen. The Senate failed for the sixth time to move any of the proposed short-term funding bills. It’s now the second week of the government shutdown, and there’s still no deal to reopen operations. For now, the market seems to be ignoring the political mess—but that could change fast.

President Donald Trump threw more uncertainty into the mix on Tuesday, saying not all furloughed workers may get back pay. “It depends on who we’re talking about,” he told reporters. Military members could also miss their Oct. 15 paycheck if the standoff drags further. While Wall Street hasn’t blinked yet, the risk of lasting economic damage rises by the day.

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