Three key US stock market indices closed higher on Tuesday, posting quarterly and monthly gains despite continued uncertainty over the risk of a government shutdown.
Wall Street Ends Quarter Higher Amid US Government Shutdown Threat
Trading Results
- Dow Jones Industrial Average up 0.18%
- S&P 500 up 0.41%
- Nasdaq up 0.31%
This marked the fifth consecutive month of gains for the S&P 500 and Dow Jones Industrial Average, while the Nasdaq rose for the sixth consecutive month. The quarterly results also marked their highest since 2020.
Sectors and Companies
Of the 11 sectors in the S&P 500, seven posted gains. Healthcare led the way (+2.45%), with Pfizer shares leading the gains (+6.8%) following the company’s agreement with Trump to lower Medicaid drug prices.
At the opposite extreme was the transportation sector, where airlines slumped due to the threat of a government shutdown. United Airlines shares fell 2.6%, and Southwest Airlines fell 2.2%.
Firefly Aerospace plunged 20.7% after a failed rocket test, while Wolfspeed and Lamb Weston posted significant gains.
Investors continue to evaluate the outlook for the Federal Reserve’s monetary policy. Expectations for a rate cut are growing, but a government shutdown could delay the release of key macroeconomic data, including the labor market report. Meanwhile, US President Donald Trump warned Democrats that a possible government shutdown would give his administration the opportunity to take “irreversible steps,” including cutting programs important to the opposition.
Despite the political uncertainty, September was the S&P 500’s strongest since 2010, and the Nasdaq posted its best third quarter in 15 years.
In an interview with Anthony Pompliano, Wall Street analyst Jordi Visser stated that American banks and large financial firms will continue to increase their investments in Bitcoin by the end of the year.
According to him, institutional investors are already formulating their strategy for 2026, and cryptocurrency plays a key role in it.
These predictions are supported by the data. According to surveys, 83% of large investors plan to increase their cryptocurrency positions as early as next year. In their May report, Bitwise analysts predict capital inflows into Bitcoin of up to $120 billion in 2025 and up to $300 billion by 2026.
