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Wall Street closed higher on Monday, driven by tech and financial stocks. Investors largely overlooked concerns about a possible government shutdown and shrugged off hawkish signals from Fed officials. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.2%, or 68.78 points, to close at 46,316.07. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.
The tech-heavy Nasdaq Composite added 107.09 points, or 0.5%, to close at 22,591.15.
The S&P 500 gained 17.51 points, or 0.3%, to close at 6,661.21. Ten of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 0.5%, 0.5% and 0.4%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.8%.
The fear gauge CBOE Volatility Index (VIX) increased 5.4% to 16.12. A total of 17.91 billion shares were traded on Monday, lower than the last 20-session average of 18.25 billion. Advancers outnumbered decliners by a 1.38-to-1 ratio on the NYSE and by 1.19-to-1 on the Nasdaq.
Markets Rally Offsetting Shutdown Concerns and Hawkish Fed Officials
Market sentiment held firm despite the prospect of a potential U.S. government shutdown later this week. Historically, such political standoffs have rattled investor confidence, but traders appeared more focused on growth prospects in the technology sector. The Nasdaq outperformed as demand surged for mega-cap technology stocks, a segment that has often buoyed the market during periods of volatility. The S&P 500 also notched gains, while the Dow Jones Industrial Average closed modestly higher, reflecting more cautious moves among industrial and value-oriented names.
The session’s rally underscored resilience in market sentiment, with investors seemingly choosing optimism over caution at the start of the final quarter. Still, uncertainty around fiscal negotiations and monetary policy lingers, leaving Wall Street poised for heightened volatility in the days ahead.
Beth Hammack and Alberto Musalem, two Fed officials who adopted a hawkish stance on Monday, emphasized that interest rates may need to stay higher for longer to contain inflation. Despite the cautious signals, equity markets reacted resiliently, and investors continued to bet on at least one more rate cut in 2025. Traders are currently pricing in an 89% chance of a 25-basis-point rate cut at the next Fed meeting, per the CME’s FedWatch Tool.
Cannabis Stocks Soar After Trump Endorses CBD for Senior Healthcare
Cannabis stocks saw strong gains on Monday, largely in response to a surprise public endorsement of cannabidiol (CBD) by President Donald Trump. He posted a nearly three-minute video promoting CBD’s potential benefits for seniors and calling for Medicare coverage of hemp-derived treatments. This signals a possible shift in federal cannabis policy, including reclassification of marijuana from Schedule I to a less restrictive category and easing of tax constraints under Section 280E.
Per the National Association of Realtors, Pending Home Sales increased 4% in August, after falling in July. The number for July was revised down to a decrease of 0.3% from the previously reported decline of 0.4%
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Stock Market News for Sep 30, 2025
Wall Street closed higher on Monday, driven by tech and financial stocks. Investors largely overlooked concerns about a possible government shutdown and shrugged off hawkish signals from Fed officials. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.2%, or 68.78 points, to close at 46,316.07. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative.
The tech-heavy Nasdaq Composite added 107.09 points, or 0.5%, to close at 22,591.15.
The S&P 500 gained 17.51 points, or 0.3%, to close at 6,661.21. Ten of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 0.5%, 0.5% and 0.4%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.8%.
The fear gauge CBOE Volatility Index (VIX) increased 5.4% to 16.12. A total of 17.91 billion shares were traded on Monday, lower than the last 20-session average of 18.25 billion. Advancers outnumbered decliners by a 1.38-to-1 ratio on the NYSE and by 1.19-to-1 on the Nasdaq.
Markets Rally Offsetting Shutdown Concerns and Hawkish Fed Officials
Market sentiment held firm despite the prospect of a potential U.S. government shutdown later this week. Historically, such political standoffs have rattled investor confidence, but traders appeared more focused on growth prospects in the technology sector. The Nasdaq outperformed as demand surged for mega-cap technology stocks, a segment that has often buoyed the market during periods of volatility. The S&P 500 also notched gains, while the Dow Jones Industrial Average closed modestly higher, reflecting more cautious moves among industrial and value-oriented names.
The session’s rally underscored resilience in market sentiment, with investors seemingly choosing optimism over caution at the start of the final quarter. Still, uncertainty around fiscal negotiations and monetary policy lingers, leaving Wall Street poised for heightened volatility in the days ahead.
Beth Hammack and Alberto Musalem, two Fed officials who adopted a hawkish stance on Monday, emphasized that interest rates may need to stay higher for longer to contain inflation. Despite the cautious signals, equity markets reacted resiliently, and investors continued to bet on at least one more rate cut in 2025. Traders are currently pricing in an 89% chance of a 25-basis-point rate cut at the next Fed meeting, per the CME’s FedWatch Tool.
Cannabis Stocks Soar After Trump Endorses CBD for Senior Healthcare
Cannabis stocks saw strong gains on Monday, largely in response to a surprise public endorsement of cannabidiol (CBD) by President Donald Trump. He posted a nearly three-minute video promoting CBD’s potential benefits for seniors and calling for Medicare coverage of hemp-derived treatments. This signals a possible shift in federal cannabis policy, including reclassification of marijuana from Schedule I to a less restrictive category and easing of tax constraints under Section 280E.
Consequently, shares of Tilray Brands, Inc. (TLRY - Free Report) and Green Thumb Industries Inc. (GTBIF - Free Report) jumped 60.9% and 15.7%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Per the National Association of Realtors, Pending Home Sales increased 4% in August, after falling in July. The number for July was revised down to a decrease of 0.3% from the previously reported decline of 0.4%