We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed higher on Tuesday, driven by healthcare stocks. Investors continued to overlook concerns about an imminent government shutdown and largely ignored economic data from the consumer sector. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.2%, or 81.82 points, to close at 46,397.89. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative. This was a record close for the index.
The tech-heavy Nasdaq Composite added 68.86 points, or 0.3%, to close at 22,660.01.
The S&P 500 gained 27.25 points, or 0.4%, to close at 6,688.46. Seven of the 11 broad sectors of the benchmark index closed in the green. The Health Care Select Sector SPDR (XLV), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 2.4%, 0.8% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.1%.
The fear gauge CBOE Volatility Index (VIX) increased 1% to 16.28. A total of 18.56 billion shares were traded on Tuesday, higher than the last 20-session average of 18.38 billion. Advancers outnumbered decliners by a 1.27-to-1 ratio on the NYSE, while declining issues led advancing ones by 1.02-to-1 on the Nasdaq.
Wall Street Climbs Despite Looming Government Shutdown Threat
Wall Street managed to notch gains on Tuesday even as investors kept a close eye on Washington, where the threat of a federal government shutdown loomed large. The potential lapse in funding, which would disrupt non-essential government operations, has stirred unease among market participants, raising questions about the broader economic and financial impact if lawmakers fail to reach an agreement. A prolonged shutdown could dent consumer confidence, slow government spending and temporarily weigh on GDP, though markets have historically recovered quickly once funding is restored.
Despite these worries, stocks rallied as investors looked beyond short-term political wrangling. Many traders appeared to bet that even if a shutdown materializes, its economic consequences would likely be limited compared to other headwinds, such as inflationary pressures and the Fed’s rate path. Previous shutdowns have caused disruptions, but markets often view them as political theater rather than a systemic threat.
Health Care Stocks Up on Defensive Demand & Trump’s Drug Pricing
The health care sector advanced on Tuesday as investors sought defensive positioning amid uncertainty over a potential government shutdown. Health care stocks are often viewed as safer bets during periods of political and economic instability, given the sector’s stable demand and resilience against cyclical downturns. In addition, optimism around pharmaceutical and biotech companies helped lift sentiment, with several firms benefiting from positive trial updates and regulatory developments.
What also helped was President Trump announcing plans to lower the cost of all prescription drugs under the Medicaid program for low-income Americans. Trump said he would introduce new medications at a “most favored nation” price in return for tariff relief. He added that he expects other pharmaceutical companies to adopt similar measures, which further boosted healthcare stocks.
In September 2025, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained around 5.6%, 3.5% and 1.9%, respectively. These gains were driven by expectations of further Fed rate cuts, strong earnings and optimism about artificial intelligence.
Quarterly Roundup
For third-quarter 2025, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained around 11.2%, 7.8% and 5.2%, respectively.
Economic Data
Per the S&P Global data, Case-Shiller Home Prices for 10-City Composite declined 0.3% in July, after decreasing 0.1% in June. Prices for the 20-City Composite also decreased 0.3% in July, after declining less than 1% in June.
Per the Conference Board, Consumer Confidence for September came in at 94.2. The number for August was revised up to 97.8 from the previously reported 97.4.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Oct 1, 2025
Wall Street closed higher on Tuesday, driven by healthcare stocks. Investors continued to overlook concerns about an imminent government shutdown and largely ignored economic data from the consumer sector. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.2%, or 81.82 points, to close at 46,397.89. Twenty components of the 30-stock index ended in positive territory, while 10 ended in negative. This was a record close for the index.
The tech-heavy Nasdaq Composite added 68.86 points, or 0.3%, to close at 22,660.01.
The S&P 500 gained 27.25 points, or 0.4%, to close at 6,688.46. Seven of the 11 broad sectors of the benchmark index closed in the green. The Health Care Select Sector SPDR (XLV), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 2.4%, 0.8% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) fell 1.1%.
The fear gauge CBOE Volatility Index (VIX) increased 1% to 16.28. A total of 18.56 billion shares were traded on Tuesday, higher than the last 20-session average of 18.38 billion. Advancers outnumbered decliners by a 1.27-to-1 ratio on the NYSE, while declining issues led advancing ones by 1.02-to-1 on the Nasdaq.
Wall Street Climbs Despite Looming Government Shutdown Threat
Wall Street managed to notch gains on Tuesday even as investors kept a close eye on Washington, where the threat of a federal government shutdown loomed large. The potential lapse in funding, which would disrupt non-essential government operations, has stirred unease among market participants, raising questions about the broader economic and financial impact if lawmakers fail to reach an agreement. A prolonged shutdown could dent consumer confidence, slow government spending and temporarily weigh on GDP, though markets have historically recovered quickly once funding is restored.
Despite these worries, stocks rallied as investors looked beyond short-term political wrangling. Many traders appeared to bet that even if a shutdown materializes, its economic consequences would likely be limited compared to other headwinds, such as inflationary pressures and the Fed’s rate path. Previous shutdowns have caused disruptions, but markets often view them as political theater rather than a systemic threat.
Health Care Stocks Up on Defensive Demand & Trump’s Drug Pricing
The health care sector advanced on Tuesday as investors sought defensive positioning amid uncertainty over a potential government shutdown. Health care stocks are often viewed as safer bets during periods of political and economic instability, given the sector’s stable demand and resilience against cyclical downturns. In addition, optimism around pharmaceutical and biotech companies helped lift sentiment, with several firms benefiting from positive trial updates and regulatory developments.
What also helped was President Trump announcing plans to lower the cost of all prescription drugs under the Medicaid program for low-income Americans. Trump said he would introduce new medications at a “most favored nation” price in return for tariff relief. He added that he expects other pharmaceutical companies to adopt similar measures, which further boosted healthcare stocks.
Consequently, shares of Pfizer Inc. (PFE - Free Report) and Eli Lilly and Company (LLY - Free Report) jumped 6.8% and 5%, 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.
Monthly Roundup
In September 2025, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained around 5.6%, 3.5% and 1.9%, respectively. These gains were driven by expectations of further Fed rate cuts, strong earnings and optimism about artificial intelligence.
Quarterly Roundup
For third-quarter 2025, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained around 11.2%, 7.8% and 5.2%, respectively.
Economic Data
Per the S&P Global data, Case-Shiller Home Prices for 10-City Composite declined 0.3% in July, after decreasing 0.1% in June. Prices for the 20-City Composite also decreased 0.3% in July, after declining less than 1% in June.
Per the Conference Board, Consumer Confidence for September came in at 94.2. The number for August was revised up to 97.8 from the previously reported 97.4.