Major U.S. stock indices closed higher on Tuesday, September 30, 2025, overcoming early session declines prompted by concerns over a potential government shutdown. The technology and healthcare sectors led the gains, with significant movements in shares of Nvidia, Pfizer, and Robinhood following company-specific news.
The S&P 500 finished the day up 0.4%, while the tech-focused Nasdaq Composite added 0.3%. The Dow Jones Industrial Average also saw a modest increase of 0.2%, reflecting a broad-based recovery throughout the trading session despite looming fiscal uncertainty in Washington.
Key Takeaways
- Major U.S. indices, including the S&P 500 and Nasdaq, closed higher despite concerns about a potential government shutdown.
- Nvidia's stock reached a new 52-week high after its partner CoreWeave secured a $14.2 billion cloud deal with Meta.
- Pfizer shares surged 6.8% following an agreement with the Trump administration to lower drug prices.
- Robinhood gained 4.7%, continuing its momentum after being included in the S&P 500 index.
- Investors are monitoring the potential delay of the nonfarm payroll report, a key economic indicator for the Federal Reserve.
Technology Sector Lifts Nasdaq
The technology sector played a crucial role in Tuesday's market performance, driven by positive developments related to artificial intelligence infrastructure. Nvidia (NVDA) saw its shares climb 2.6%, establishing a new 52-week high of $187.35 per share.
The upward movement was largely influenced by news from CoreWeave, a cloud computing provider backed by Nvidia. CoreWeave's stock soared 11.7% after the company announced it had secured a substantial $14.2 billion long-term cloud services agreement with Meta Platforms. This deal provides Meta with access to Nvidia's latest GB300 systems, reinforcing Nvidia's dominant position in the AI hardware market.
Nvidia's 2025 Performance
Year-to-date, Nvidia's stock has demonstrated significant growth, recording an increase of 38.94%. This follows a recovery from its 52-week low of $86.60 in April of this year.
Analyst Confidence in Nvidia Grows
The deal between CoreWeave and Meta has bolstered analyst confidence in Nvidia's future prospects. Following the announcement, KeyBanc increased its price target for Nvidia to $250 from $230, while maintaining an overweight rating on the stock.
Similarly, analysts at Citi reiterated their positive outlook, raising their price target to $210 from $200 with a Buy rating. According to a note mentioned by TheFly, Citi anticipates that Nvidia’s upcoming GPU Technology Conference (GTC) in October will act as a positive catalyst for the stock.
Healthcare Stocks Surge on Drug Pricing News
The healthcare sector was the day's top performer, led by a significant rally in pharmaceutical stocks. Pfizer (PFE) was a standout, with its shares jumping 6.8%.
The catalyst for this surge was an announcement regarding a voluntary agreement between Pfizer and the Trump administration aimed at reducing prescription drug costs for American consumers. The initiative is part of a broader effort to align U.S. drug prices more closely with those in other developed nations.
TrumpRX Initiative
Alongside the agreement with Pfizer, President Trump announced the planned launch of a new website called TrumpRX. Scheduled to go live in 2026, the platform will enable consumers to compare and find lower prices for prescription medications.
In a public statement, Pfizer's Chairman and CEO, Albert Bourla, commented on the company's decision.
"By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation," Bourla stated. "This is about putting all patients first and ensuring America remains world’s leading engine of medical breakthroughs."
The positive sentiment extended to other major pharmaceutical companies. Merck & Co (MRK) also saw its stock rise by 6.8%. Other firms, including Eli Lilly (LLY), Johnson & Johnson (JNJ), and Amgen (AMGN), experienced gains. Reports from CNBC indicated that Eli Lilly is now in discussions with the White House to potentially join the price-reduction initiative.
Robinhood Continues Upward Trend
Financial technology company Robinhood (HOOD) also had a strong session, with its stock price increasing by 4.7% to reach a new 52-week high of $143.18. This performance comes just one week after the company was officially added to the S&P 500 index.
The recent gains were supported by Robinhood's announcement that it is expanding its prediction markets products to international users, broadening its service offerings beyond the United States. The stock has seen a remarkable 284.27% increase year-to-date, a substantial rise from its price of $22 in September 2024.
John Todaro, an analyst at Needham, raised the firm's price target on Robinhood to $145 from $120, reiterating a Buy rating. According to TheFly, Needham views Robinhood as being the most advanced company in its effort to become a comprehensive "one-stop shop" for financial services.
Market Braces for Potential Shutdown
While markets ended Tuesday on a positive note, investors remain cautious about the possibility of a U.S. government shutdown, which could begin on October 1. Historically, short-term shutdowns have had a limited impact on the stock market, but an extended closure could introduce significant volatility.
A primary concern for investors is the potential delay of key economic data. The Department of Labor has stated that it will not release the nonfarm payroll report, scheduled for this Friday, in the event of a shutdown. This report is a critical piece of information for the Federal Reserve as it prepares for its next policy meeting in October.
S&P 500 Daily Performance Leaders and Laggards
On Tuesday, the market saw varied performance across different sectors. The top-performing stocks in the S&P 500 were concentrated in the healthcare industry.
- Pfizer Inc. (PFE): +6.8%
- Merck & Co. (MRK): +6.8%
- Danaher Corp. (DHR): +6.5%
- Bio-Techne Corp. (TECH): +6.5%
- Charles River Laboratories (CRL): +6.4%
Conversely, companies in the materials and consumer discretionary sectors were among the biggest decliners.
- Albemarle Corp. (ALB): -6.7%
- MGM Resorts (MGM): -5.1%
- Capital One Financial (COF): -4.9%
- Paycom Software (PAYC): -4.5%
- Block Inc. (SQ): -4.1%
