Wall Street’s three major indexes closed higher on Tuesday in a choppy session, capping both quarterly and monthly gains, even as investors braced for a potential U.S. government shutdown that could delay key economic data and cloud the Federal Reserve’s policy outlook.
The S&P 500, Nasdaq, and Dow each posted their second consecutive quarterly advance. For the S&P 500 and Dow, it was also the fifth straight monthly gain, while the Nasdaq notched its sixth. The S&P 500 climbed 27.25 points (0.41%) to 6,688.46, the Nasdaq gained 68.86 points (0.31%) to 22,660.01, and the Dow added 81.82 points (0.18%) to a record 46,397.89.
On a monthly basis, the S&P 500 rose 3.53%, marking its best September since 2010. The Nasdaq advanced 5.61%, its best September since 2010, and the Dow gained 1.87%, its strongest September since 2019. For the quarter, the Nasdaq led with an 11.24% jump, followed by the S&P 500 (+7.79%) and the Dow (+5.22%).
Markets faced uncertainty as President Donald Trump warned Democrats that a shutdown at midnight would enable his administration to take “irreversible” actions, including cutting programs important to them. Analysts cautioned that this standoff could weigh more heavily on the economy than past shutdowns, especially if it delays critical releases like the upcoming jobs report.
Healthcare stocks led sector gains, rising 2.45%, with Pfizer jumping 6.8% after Trump announced drug price cuts for Medicaid and a “most favored nation” pricing policy in exchange for tariff relief. Meanwhile, airline stocks slumped on concerns a shutdown could disrupt aviation operations, with Southwest Airlines down 2.6% and United Airlines losing 2.2%.
Other notable movers included Wolfspeed, which surged 29% after exiting bankruptcy, and Firefly Aerospace, which fell 20.7% following a rocket test failure. Lamb Weston rose 4.3% after topping revenue and profit estimates.
Trading volume was active, with 18.56 billion shares exchanged, above the 20-day average of 18.38 billion.
