The stock market went up on Wednesday after the government shut down. Investors hope that the shutdown would be brief and would have a minimal impact on the economy.
The U.S. government is currently on a temporary halt after President Donald Trump’s Republican Party and the opposition Democrats failed to reach a deal and pass a bill funding government services into October and beyond.
Overall, S&P 500 increased 0.3% to 6,711, while NASDAQ rose 0.4% to 22,755.
Tweet of the Day
I sold Accenture $ACN from my Conservative Growth Portfolio earlier this year. Qtrly profit growth slowed, and the US Government started scrutinizing consulting contracts more with Trump in office. https://t.co/ZqO0uaxMf5
— David Sharek (@GrowthStockGuy) October 1, 2025
Chart of the Day
Here is the one-year chart of Supermicro Computer (SMCI) as of September 4, 2025, when the stock was at $41.
Last quarter, the company delivered -34% profit growth year-over-year on 8% revenue growth, with management primarily blaming to tariff impacts. Management stated component tariffs and supply chain pressures reduced margins, offsetting some of the strong demand it continues to see for AI server solutions. These unexpected costs not only pressured profitability, but also disrupted shipment timing, leading to a gap between planned and actual revenue.
While Supermicro Computer is actively working to mitigate these impacts through supply chain adjustments and customer partnerships, management acknowledged that tariffs remain a headwind in the near term.
SMCI is now a speculative stock that David Sharek, Founder of School of Hard Stocks, still follow. He might add it to our Growth Portfolio again in the future.
