Stocks were mixed Wednesday as investors continued to traded cautiously amid the prospects of a potential U.S. government shutdown. The Dow Jones Industrial Average fell nearly 70 points, while the S&P 500 Index ticked above a positive flatline and the Nasdaq Composite added 0.22%.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): +0.02% or +0.98 points to 4,274.51

Dow Jones Industrial Average (DIA  ): -0.20% or -68.61 points to 33,550.27

Nasdaq Composite Index (QQQ  ): +0.22% or +29.24 points to 13,092.85

In the spotlight, a potential federal shutdown is looming over Wall Street, as Congress has until Sept. 30 to reach a spending deal to cover its debts. President Joe Biden said Wednesday that he does not believe a shutdown is inevitable and called on lawmakers to "do their job, [and] fund the government," according to multiple reports.

Also in the news, media stocks including Netflix (NFLX  ), Warner Bros. Discovery (WBD  ), Disney (DIA  ) and Paramount (PARA  ) rose Wednesday as Hollywood writers and studios approved a new labor contract, ending a nearly 150-day labor strike.

The deal, which extends until May 2026, contains a minimum 5% pay raise for writers, with additional increases planned for 2024 and 2025. The contract also outlines that artificial intelligence material cannot by a source or literary material, and adds a new residual payment based on viewership and show popularity.

On the earnings front, Costco Wholesale (COST  ) slipped lower despite reporting a strong fiscal fourth-quarter earnings late Tuesday. Notably, shoppers reduced their spending during the period, with the average transaction amount fall 4% globally and 4.5% in the United States -- despite traffic increasing by 5.2% and 5%, respectively.

Elsewhere, Meta Platforms (META  ) announced the release of its newest Quest 3 VR headset Wednesday, which includes new features like an advanced screen, a powerful microchip processor and better passthrough -- the blending of the digital display with outside real-world surrounding for the user.

Target (TGT  ) announced it will close nine stores in major U.S. cities due to increased violence, theft and crime. Impacted stores in New York City, Seattle, San Francisco and Portland will shut down on Oct. 21.

"We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," Target said in a release. "We know that our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all."

Morgan Stanley analyst Megan Alexander initiated Mattel (MAT  ) with an Overweight rating on Wednesday, calling the toymaker a top pick.

"MAT is trading well below historical levels, and we expect the stock to re-rate on both an absolute and relative basis as (1) revisions turn positive, (2) it proves resilient in a deteriorating macro, and (3) it monetizes its strong IP in the wake of the Barbie movie." Alexander wrote in a note.

For Thursday, traders will get new figures on second-quarter GDP and pending home sales for August, and will react to earnings from companies like Micron Technology (MU  ).