WASHINGTON (dpa-AFX) - After moving mostly higher over the two previous sessions, stocks fluctuated over the course of the trading day on Tuesday. The major averages bounced back and forth across the unchanged line for much of the session before a late-day advance.
The upward move seen going into the end of the day helped the major averages close in positive territory. The S&P 500 climbed 27.25 points or 0.4 percent to 6,688.46, the Nasdaq rose 68.86 points or 0.3 percent to 22,660.01 and the Dow increased 81.82 points or 0.2 percent at 46,397.89.
The choppy trading seen for much of the day came as traders kept an eye on developments on Washington, where lawmakers are struggling to reach an agreement to avert a government shutdown.
Ahead of midnight deadline, Democrats have demanded that a temporary funding bill include an extension of enhanced Obamacare tax credits, while Republicans argue the issue should be debated after a funding bill is passed.
After a meeting between President Donald Trump and Congressional leaders on Monday, Vice President JD Vance said he thinks 'we're headed to a shutdown because the Democrats won't do the right thing.'
'Relations between the Democrats and Republicans are frostier than an Alaska morning, so markets are not confident on the prospects of agreeing a deal before midnight tonight,' said AJ Bell investment director Russ Mould.
He added, 'One of the biggest short-term concerns for markets is the impact this would have on the release of government data - particularly the jobs number due on Friday - without which the Federal Reserve might not feel as confident about cutting interest rates.'
The late-day strength on Wall Street may have reflected hopes lawmakers will reach a last-minute agreement, as they often do, or optiism a government shutdown will not have a major impact on the economy.
Meanwhile, traders largely shrugged off a Conference Board report showing a bigger than expected decrease by its reading on U.S. consumer confidence in the month of September.
The Conference Board said its consumer confidence index slid to 94.2 in September from an upwardly revised 97.8 in August. Economists had expected the consumer confidence index to dip to 96.0 from the 97.4 originally reported for the previous month.
With the bigger than expected decrease, the consumer confidence index dropped to its lowest level since April 2025.
Sector News
Pharmaceutical stocks moved sharply higher over the course of the session, driving the NYSE Arca Pharmaceutical Index up by 3.7 percent to a six-month closing high.
Pfizer (PFE) helped lead the sector higher, soaring by 6.8 percent after announcing an agreement with the Trump Administration the drug giant said will ensure U.S. patients pay lower prices for their prescription medicines.
Substantial strength also emerged among healthcare stocks, as reflected by the 2.4 percent surge by the Dow Jones U.S. Health Care Index.
Biotechnology, computer hardware and networking stocks also saw considerable strength, while oil producer and banking stocks showed notable moves to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.3 percent, while China's Shanghai Composite Index rose by 0.5 percent.
Meanwhile, European stocks have moved mostly higher on the day. The German DAX Index is up by 0.5 percent and the U.K.'s FTSE 100 Index is up by 0.4 percent, although the French CAC 40 Index has bucked the uptrend and edged down by 0.1 percent.
In the bond market, treasuries showed a lack of direction over the course of the session. The yield on the benchmark ten-year note, which moves opposite of its price, eventually ended the day up by less than a basis point at 4.148 percent.
Looking Ahead
Early trading on Wednesday may be impacted by the outcome of last-minute negotiations to avert a government shutdown, while reports on private sector employment and manufacturing activity are also likely to attract attention.
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