The Dow and S&P 500 registered record closing highs on Friday, with interest rate-cut expectations improving as the U.S. government shutdown went on for a third day, while the Nasdaq eased. Shares of big tech-related names mostly fell. Shares of Applied Materials were down after the chip-equipment maker late Thursday forecast a $600 million hit to fiscal 2026 revenue.

Shares of Tesla also were lower, while the S&P 500 utilities gained. The U.S. government shutdown dragged on for a third day. Investors were still able to digest a survey by the Institute for Supply Management, which showed the services employment index contracted for the fourth consecutive month. The news underscored the case for more interest rate cuts from the Fed.

"It certainly feels like momentum is on the side of inve

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