Updates to 16:02 EDT

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

SHUTDOWN DAY TWO: WALL ST SHUFFLES TO RECORD CLOSING HIGHS

U.S. stocks drifted to new all-time closing highs on Thursday, coasting on the fumes of pre-shutdown catalysts.

The three major U.S. equity indexes' modest gains, capping a languid, see-saw session, were enough to register record closing highs as investors adjusted to the possibility of a protracted government shutdown in the face of congressional failure to reach a funding agreement.

The Dow Jones Industrial Average .DJI rose 79.05 points, or 0.17%, to 46,520.15, the S&P 500 .SPX gained 4.21 points, or 0.06%, to 6,715.41 and the Nasdaq Composite .IXIC gained 88.89 points, or 0.39%, to 22,844.05.

Chips .SOX, airlines .SPCOMAIR, and materials .SPLRCM handily outperformed the broader market.

While stocks tend to shrug off these shutdowns, the longer they last, the greater the market risks.

In the absence of official government data, private sector indicators are enjoying a moment of intensified relevance. With jobless claims AWOL on Thursday and the September employment report likely follow suit, Wednesday's ADP report and Thursday's Challenger Gray data - ordinarily the understudies of labor market indicators - took center stage to enact a drama about a softening jobs picture.

ADP's unexpected drop in private payrolls combined with Challenger Gray's 55% jump in year-to-date layoff announcements appear to suggest the Fed's September rate cut was justified. The softening jobs picture seems to pave the way for an additional rate cuts of 50 basis points this year.

"We're going to go off the data we have," said Chicago Fed President Austan Goolsbee. The regional Fed's estimates the unemployment rate is holding firm at 4.3%, which "indicates some steadiness in the labor market," Goolsbee added.

Even so, Dallas Fed President Lorie Logan said that while the most recent reduction of the key Fed funds target rate was appropriate insurance against labor market weakness, the central bank must not "ease conditions too much, only to have to reverse course."

On Friday, in the absence of the Labor Department's September employment report, market observers will have to settle for ISM and S&P Global PMIs.

Here's your closing snapshot:

(Stephen Culp)

*****

EARLIER ON LIVE MARKETS

DEAR 'LIBERATION DAY' TARIFFS: IT IS YOUR SIX-MONTH ANNIVERSARY CLICK HERE

WESTERN DIGITAL, SEAGATE RIDE AI WAVE TO ALL-TIME HIGHS - IS A COOLDOWN COMING? CLICK HERE

IS IT WORTH TRADING THE HEALTHCARE "BOUNCE"? CLICK HERE

THE ONLY (ECONOMIC) SHOW IN TOWN: CHALLENGER CLOCKS MOST YTD LAYOFFS SINCE 2020 CLICK HERE

SHUTDOWN SECOND-DAY: WALL STREET NOT BOTHERED YET CLICK HERE

STAMP DUTY HOLIDAY ON UK SHARES PRAISED, BUT IS IT ENOUGH? CLICK HERE

JAPAN'S EQUITY RALLY TO RUN OUT OF STEAM? CLICK HERE

FEARS OF UK GILT DOOM LOOP OVERBLOWN - AXA IM CLICK HERE

STOXX 600 HITS NEW INTRADAY RECORD CLICK HERE

EUROPE BEFORE THE BELL: STOXX SET FOR INTRADAY RECORD CLICK HERE

DARKNESS FALLS ON DOUR US JOBS MARKET CLICK HERE