By Yasin Ebrahim

Investing.com – The S&P 500 pared some gains Wednesday, struggling to scale the wall of worry including concerns about the recovery and a potential government shutdown.

The rose 0.2%, the gained 0.35%, or 120 points, the Nasdaq was down 0.10%.

Consumer staples and utilities, which serve as the defensive corners of the markets, were the biggest sector gainers, as investors appeared to remain cautious amid several worries including growth, inflation, and a potential U.S. government shutdown.

“[W]”When the Fed starts to ease off the accelerator, there is a risk that recovery momentum will drop and growth will slow down,” Stifel wrote in a note.

Conagra Brands (NYSE:), Tyson Foods (NYSE:), Sempra Energy (NYSE:), and Nextera Energy (NYSE:) led the broader market to the upside.

Treasury yields have risen again, and the 10-year Treasury is trading at 1.5%. Wall Street analysts suggested that higher rates are still possible before equities become troubled.

Goldman Sachs (NYSE -) wrote in a note, “Without any changes to the P/E the 10-year UST Yield would have to rise above 2.3% for relative stock valuations to rank higher than the long term average.”

The fall in the value of semiconductors due to Micron’s problems has meant that Tech was unable to achieve gains.

Micron Technology (NASDAQ) plunged more than 2 percent after Micron’s fourth-quarter results, which beat both top and bottom line expectations, fell below its fiscal first quarter guidance.

Still, investors are likely to use the weakness to seek more exposure to Micron.

“[W]hile it is unlikely that last night will be viewed as an inflection, we see investors increasingly more interested in accumulating shares as risk/reward in CY22 appears among the best in the sector especially as MU continues to demonstrate structurally improving fundamentals,” Credit Suisse (SIX:) said in a note.

Energy stocks were flat as oil prices stumbled on data showing that weekly supplies unexpectedly rose.

According to the U.S. Energy Information Administration, crude oil stockpiles increased by 4.58million barrels during week ending Sept. 24, compared with forecasts of a decrease of 2.2million.

Capitol Hill lawmakers remain stuck in an impasse over whether or not to increase the debt ceiling for funding the government. They also want to avoid a shutdown this Friday.

Senate Democratic Leader Chuck Schumer stated that the Senate would vote on Wednesday and Thursday about a plan to fund government operations through December.

Netflix (NASDAQ 🙂 saw a more than threefold increase in trading after the acquisition of its first videogame studio. This is as Netflix looks to move into mobile gaming.