The tech-heavy Nasdaq Composite increased by 95.15 points, representing a 0.4% rise, concluding the session at 22,755.16. The S&P 500 increased by 22.74 points, representing a 0.3% rise, concluding the session at 6,711.2. Six of the 11 broad sectors of the benchmark index finished the day with gains. The Health Care Select Sector SPDR advanced 3.1%, the Technology Select Sector SPDR increased by 1%, and the Utilities Select Sector SPDR also rose by 1%. In contrast, the Communication Services Select Sector SPDR experienced a decline of 1.4%.
The CBOE Volatility Index, often referred to as the fear gauge, experienced a slight uptick, reaching 16.29. On Wednesday, the trading volume reached 19.79 billion shares, surpassing the 20-session average of 18.62 billion shares. On the NYSE, advancers surpassed decliners with a ratio of 1.92-to-1, while on the Nasdaq, the ratio stood at 1.35-to-1. On Wednesday, the U.S. federal government officially entered a state of shutdown after lawmakers were unable to pass new funding legislation. The action suspended numerous nonessential government functions and compelled hundreds of thousands of federal employees to either take furloughs or continue working without immediate compensation. However, in spite of the political drama, the financial markets seemed largely unaffected. Initially, markets exhibited a cautious opening, influenced by the unexpected decline in private payrolls. Automatic Data Processing, Inc. reported a loss of 32,000 jobs in September, contrary to expectations. However, by the end of the trading session, U.S. stock indexes had rebounded and recorded gains.
The subdued response aligns with historical patterns. Historical shutdowns have exhibited minimal lasting impacts on equity markets, as investors typically prioritize corporate earnings, Federal Reserve policy, and overarching macroeconomic trends over transient political disturbances. Nevertheless, the shutdown brings about a degree of uncertainty. Delays in key economic data releases may complicate the decision-making processes of central banks, while prolonged government paralysis could ultimately challenge market patience should fiscal spillovers deteriorate. The healthcare sector emerged as one of the most robust performers, bolstered by a pharmaceutical pricing agreement established just before the shutdown.
According to a government report, for the week ending September 26, 2025, U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, saw an increase of 1.8 million barrels compared to the prior week. The figure for the preceding week was unchanged, reflecting a decline of 0.6 million barrels per day. The Institute for Supply Management reported that the Manufacturing PMI for September registered at 49.1. The figure for August was unchanged at 48.7.