US stocks closed higher on Tuesday, rounding out an unusually strong September and overcoming concerns about a potential government shutdown. The S&P 500 gained 0.41% to finish at 6,688.46, while the Nasdaq Composite rose 0.31% to 22,660.01. The Dow Jones Industrial Average advanced 81.82 points, or 0.18%, to 46,397.89, marking a fresh closing high.
Tuesday’s session capped two consecutive quarters of gains across the major indexes, with the Nasdaq posting its sixth straight monthly advance. The S&P 500 and Dow each recorded a fifth consecutive monthly rise.
For September, the S&P 500 gained over 3%, the Dow nearly 2%, and the Nasdaq 5.6%. The third quarter was also strong, with the Nasdaq up more than 11% since June.
Corporate movers
On Wall Street, software stocks lagged. Paychex fell more than 1% after earnings, while Salesforce dropped 3.3%. Nvidia was a bright spot, gaining alongside CoreWeave after the latter announced a US$14.2bn AI cloud infrastructure deal with Meta Platforms.
In London trade, BHP reversed early losses but still closed 1.9% lower after reports suggested China’s state-run iron ore buyer ordered steelmakers to halt new BHP cargo purchases. A Chinese steel news site later disputed the claim.
Shutdown concerns remain
The federal government is due to run out of funding at midnight. President Donald Trump said, “nothing is inevitable, but I would say it’s probably likely” that a shutdown will occur. Historically, shutdowns have had limited market impact, but investors worry this one could be more disruptive if mass layoffs of federal employees proceed or if the closure drags on.
Economic data in focus
The Bureau of Labor Statistics reported that job openings rose 19,000 in August to 7.227 million, reinforcing expectations of a Federal Reserve rate cut later this month. However, consumer confidence for September came in weaker than expected, and if a shutdown proceeds, the Labor Department said Friday’s nonfarm payrolls report will not be released. Analysts warn this could complicate the Fed’s decision-making ahead of its October meeting.
Moody’s downgraded US credit in May, and another shutdown could add pressure on the nation’s rating.
Global and local outlook
Australian shares are set to open lower today, with ASX 200 futures pointing down 11 points to 8,862.
Looking ahead, today’s calendar is quiet, with only New Zealand’s August building permits scheduled. Overseas, manufacturing PMI reports are due across major economies.
