05:05 PM EDT, 09/29/2025 (MT Newswires) -- US equities rose after a choppy Monday session as markets weighed the prospects and implications of a potential federal government shutdown that could delay crucial economic data, including September's jobs report due later in the week.

The Nasdaq Composite rose 0.5% to 22,591.2, while the S&P 500 climbed 0.3% to 6,661.2. The Dow Jones Industrial Average advanced 0.2% to 46,316.1. All three indexes posted gains for the second consecutive day. Barring energy and communication services, all sectors ended in the green, led by consumer discretionary.

The US federal government is facing a partial shutdown beginning Wednesday unless Republicans and Democrats can agree on a spending bill, news outlets reported. President Donald Trump was reportedly expected to meet the top four congressional leaders at the White House on Monday.

"Budgets are hyper-political, leading to extreme headlines, but ultimately must be passed," D.A. Davidson said in a report e-mailed to MT Newswires. "We expect a contentious debate leading up to the deadline with potential market volatility, but a potential government shutdown is likely to be a temporary event."

Congressional Democrats are demanding that an agreement include an extension of the enhanced Obamacare tax credits set to expire at the end of this year, CNBC reported.

"We believe the two chambers of Congress are unlikely to strike a compromise by tomorrow's midnight deadline for a continuing resolution to extend the 2025 fiscal-year budget," Wells Fargo Investment Institute said.

The Department of Labor's updated guidelines on Friday confirmed the Bureau of Labor Statistics would suspend all operations during a lapse in appropriations. The official jobs report for this month is currently scheduled for a Friday release.

The Trump administration will impose a 100% tariff rate on movies made outside of the US, Trump said Monday. In a separate social media post, the president said he will impose "substantial tariffs on any country that does not make its furniture in the (US)."

Last week, Trump said the US will impose tariffs of 25% on heavy trucks and 50% on kitchen cabinets and bathroom vanities, effective Wednesday. Additionally, the US will charge 100% levies on branded or patented pharmaceutical products.

US Treasury yields were lower, with the 10-year rate dropping 3.1 basis points to 4.15% and the two-year rate losing one basis point to 3.64%.

West Texas Intermediate crude oil sank 3.8% to $63.24 a barrel in Monday late-afternoon trade.

Trump and Israeli Prime Minister Benjamin Netanyahu agreed to a plan that aims to end the war in Gaza, though Hamas said ahead of the Trump-Netanyahu meeting that it had not seen the plan, Bloomberg News reported.

Iraq's Kurdistan region resumed crude oil exports over the weekend, which, coupled with the Organization of the Petroleum Exporting Countries and its allies' plans for another oil production hike, would add to global supplies, D.A. Davidson separately said in a morning note.

In economic news, pending home sales in the US unexpectedly rose in August amid easing mortgage rates, data from the National Association of Realtors showed.

"Housing will find its footing and begin to improve more noticeably as the 30-year fixed mortgage rate closes in on 6%," Oxford Economics said. "Lower mortgage rates won't just help boost home sales but also refinancing and that is a positive for near-term consumer spending."

The Texas manufacturing sector's downturn worsened in September, as the demand and employment gauges turned negative, data from the Federal Reserve Bank of Dallas showed.

In company news, Western Digital ( WDC ) shares jumped 9.2%, the second-top gainer on the S&P 500, as Morgan Stanley boosted its price target on the data storage products maker's stock.

CSX (CSX) appointed a new chief executive for the rail-based freight service provider, while the company said Monday that it is on track to deliver volume growth for the current year. The stock climbed 5.4%, among the biggest gainers on the S&P 500.

Nvidia ( NVDA ) was up 2.1%, the best performer on the Dow. Jefferies raised the price target on the chipmaking giant to $220 from $205, while reiterating its buy recommendation.

Electronic Arts ( EA ) agreed to be acquired and taken private by an investor consortium that includes Saudi Arabia's Public Investment Fund in an all-cash deal worth around $55 billion. The videogame publisher's shares were up 4.5%.

Gold rose 1.3% to $3,857 per troy ounce, while silver was 0.8% higher at $47.02 per ounce.