Wall Street posts modest gains as shutdown begins and jobs data disappoints, but optimism around earnings and rate cuts keeps markets afloat.
Major indexes inched higher Wednesday despite a shaky macro backdrop, with the S&P 500, Nasdaq 100 and Dow Jones each adding just a few tenths of a percent by midday in New York.
XLV stock is moving in positive territory. Get the inside scoop here.
The resilience came on the heels of two major economic headwinds: the start of a federal government shutdown and the weakest private payrolls report in more than two years.
The ADP Employment Report for September showed a drop of 32,000 private-sector jobs — the steepest monthly decline since March 2023. That figure badly missed Wall Street's forecast, adding fuel to expectations that the Federal Reserve may continue cutting interest rates later this month.
With the government shutdown delaying several official economic releases, the ADP data took on added weight for traders seeking clarity on the labor market's health.
The health care sector led the rally on Wednesday, as the Trump administration moved forward with its “Most Favored Nation” proposal — a plan that would tie U.S. prescription drug prices to the lowest paid by comparable countries.
Pfizer Inc. (NYSE:PFE) and Trump announced Tuesday an agreement under which the U.S. drugmaker will reduce Medicaid prescription prices to match those in other advanced economies, in return for tariff exemptions.
The Health Care Select Sector SPDR Fund (NYSE:XLV) gained 2% on Wednesday after a 2.4% jump on Tuesday, eyeing its best two-day run since November 2020, when the first COVID-19 vaccine was announced.
Among the top 100 U.S. stocks by market cap, the six best performers were all in health care:
- Thermo Fisher Scientific Inc. (NYSE:TMO) rose 7.5% to $521.36
- Eli Lilly and Co. (NYSE:LLY) jumped 6.9% to $815.27
- Merck & Co. Inc. (NYSE:MRK) climbed 6.1% to $89.04
- Amgen Inc. (NASDAQ:AMGN) added 6.1% to $299.29
- Pfizer Inc. (NYSE:PFE) advanced 5.8% to $26.96
- Bristol-Myers Squibb Co. (NYSE:BMY) rose 5.7% to $47.65
Nike Inc. (NASDAQ:NKE) delivered a strong fiscal first-quarter report, significantly beating analyst estimates. Shares soared over 5% in response, marking the stock's best daily performance since late June.
In the commodities space, gold briefly touched $3,900 an ounce before retreating to $3,850 as sellers emerged from deeply overbought territory. Silver advanced 1.5% to $47.48 per ounce, just shy of its April 2011 all-time high of $49.83.
Meanwhile, cryptocurrency markets saw a notable rebound. Bitcoin (CRYPTO: BTC) rose 3.3% to $117,800, Ethereum (CRYPTO: ETH) jumped 4.5% and Solana (CRYPTO: SOL) soared 5%.
Wednesday’s Performance In Major U.S. Indices, ETFs
| Major Indices | Price | 1-day chg. % |
| • Nasdaq 100 | 24,757.90 | 0.3% |
| • S&P 500 | 6,698.12 | 0.1 % |
| • Dow Jones | 46,409.76 | 0.0% |
| • Russell 2000 | 2,436.02 | 0.0% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) inched 0.1% higher to $613.13.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) flattened at $463.76.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) edged 0.2% higher to $601.66.
- The iShares Russell 2000 ETF (NYSE:IWM) held steady at $241.80.
- The Health Care Select Sector SPDR Fund outperformed, up 2%; the Communication Services Select Sector SPDR Fund (NYSE:XLC) lagged, down 1.3%.
S&P 500’s Top 5 Gainers
| Stock Name | % Change |
|---|---|
| The AES Corporation (NYSE:AES) | +15.31% |
| Biogen Inc. (NASDAQ:BIIB) | +8.19% |
| Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) | +8.17% |
| Thermo Fisher Scientific Inc. | +7.65% |
| Micron Technology, Inc. (NASDAQ:MU) | +7.56% |
S&P 500’s Top 5 Losers
| Stock Name | % Change |
|---|---|
| Corteva, Inc. (NYSE:CTVA) | -8.02% |
| IDEXX Laboratories, Inc. (NASDAQ:IDXX) | -5.42% |
| News Corp. (NASDAQ:NWSA) | -5.14% |
| DexCom Inc. (NASDAQ:DXCM) | -4.63% |
| The Interpublic Group of Companies, Inc. (NYSE:IPG) | -4.56% |
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Image created using artificial intelligence via Midjourney.
