By Mucahithan Avcioglu
ISTANBUL (AA) - The New York Stock Exchange closed the week with a mixed course amid growing economic uncertainty and concerns over tech shares valuations.
The Dow Jones Industrial Average was up 0.16%, or 74.8 points, to close at 46,987.1, while the S&P 500 rose 0.13%, or 8.48 points, to 6,728.8.
On the other hand, Nasdaq fell 0.22%, or 49.46 points to end the week at 23,004.54.
The Volatility Index (VIX), also known as the "fear index," rose by 8.27% to 19.50.
The ongoing government shutdown and concerns about technology stock valuations drove the mixed course at the weekly close.
After Senate Minority Leader Chuck Schumer presented Republicans with a fresh plan that would allow the record-breaking government shutdown to end, stocks recovered from their lows. In exchange for a one-year extension of improved Affordable Care Act tax credits, the proposal would provide short-term funding for federal government operations. However, the Republicans dismissed the plan.
The government shutdown disrupted the flow of economic data, and alternative indicators are being closely monitored by investors during this period.
Also, the shutdown has taken its toll on the air travel. Transportation Secretary Sean Duffy announced on Wednesday that he would be reducing flights by 10% at 40 major airports beginning on Friday. This action might impact between 3,500 and 4,000 flights every day. Over 700 US flights had already been canceled as of Friday.
Additionally, persistent concerns about "high valuations" for tech companies also kept risk appetite low.
Shares of Oracle, which plays a significant role in the AI sector, fell 1.9%, Advanced Micro Devices (AMD) 1.8%, and Broadcom 1.7%.
Tesla shares were also down 3.7% after the firm's shareholders approved a payment package worth approximately $1 trillion for CEO Elon Musk on Thursday, contingent upon his meeting performance targets.
Investors also evaluated company balance sheets, while shares of financial services company Block fell 7.7% after its third-quarter earnings missed expectations.
Shares of tech firm Sandisk climbed 15.3% after its quarterly financial results exceeded expectations.
On the economic data side, University of Michigan's consumer sentiment index fell to 50.3 points in October, its second lowest level on record, just above June 2022's 50 points.
Consumers have expressed concern about the potential negative impact on the economy of the more than month-long federal government shutdown.
The short-term inflation expectations of the US consumers were down to 3.2% in October, according to Federal Reserve New York survey.