Wall Street closed higher on Wednesday, driven by healthcare stocks. Investors shrugged off weaker-than-expected private payrolls data and concerns surrounding the first day of the U.S. federal government shutdown. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.1%, or 43.21 points, to close at 46,441.1. Fifteen components of the 30-stock index ended in positive territory, while 15 ended in negative.
The tech-heavy Nasdaq Composite added 95.15 points, or 0.4%, to close at 22,755.16.
The S&P 500 gained 22.74 points, or 0.3%, to close at 6,711.2. Six of the 11 broad sectors of the benchmark index closed in the green. The Health Care Select Sector SPDR (XLV), the Technology Select Sector SPDR (XLK) and the Utilities Select Sector SPDR (XLU) advanced 3.1%, 1% and 1%, respectively, while the Communication Services Select Sector SPDR (XLC) fell 1.4%.
The fear gauge CBOE Volatility Index (VIX) increased marginally to 16.29. A total of 19.79 billion shares were traded on Wednesday, higher than the last 20-session average of 18.62 billion. Advancers outnumbered decliners by a 1.92-to-1 ratio on the NYSE and 1.35-to-1 on the Nasdaq.
Wall Street Shrugs Off First Day of U.S. Government Shutdown
On Wednesday, the U.S. federal government officially entered shutdown territory after lawmakers failed to pass fresh funding legislation. The move halted many nonessential government operations and forced hundreds of thousands of federal workers into furlough or into working without immediate pay. However, despite the political drama, Wall Street appeared largely unbothered.
Earlier, markets opened tentatively, pressured by the surprise drop in private payrolls. Automatic Data Processing, Inc. ADP reported a loss of 32,000 jobs in September, contrary to expectations. But by the close, U.S. stock indexes had recovered and even posted gains.
The muted reaction is in line with history. Past shutdowns have had limited long-term effects on equity markets, as investors tend to look beyond short-term political disruptions and focus on corporate earnings, Fed policy and broader macro trends. Still, the shutdown introduces uncertainty. Key economic data releases could be delayed, complicating central bank decision-making, and extended government paralysis would eventually test markets’ patience if fiscal spillovers worsen. The healthcare sector was among the strongest performers, thanks in part to a pharmaceutical pricing agreement struck just prior to the shutdown.
Consequently, shares of AbbVie Inc. ABBV and Amgen Inc. AMGN jumped 5.6% and 5.8%, 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 a government report, for the week ending Sept. 26, 2025, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.8 million barrels from the previous week. The number for the week prior remained unrevised at a decrease of 0.6 million barrels/day.
Per the Institute for Supply Management, Manufacturing PMI for September came in at 49.1. The number for August remained unrevised at 48.7.
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Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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