04:52 PM EDT, 10/01/2025 (MT Newswires) -- US equity indexes rose at the close on Wednesday amid gains in healthcare and increasing bets favoring an interest rate cut following a surprise decline in private payrolls and the beginning of a partial shutdown of the federal government.

The Nasdaq Composite rose 0.4% to 22,755.16, with the S&P 500 up 0.3% to 6,711.20 and the Dow Jones Industrial Average climbed less than 0.1% to 46,441.10. S&P 500 scaled a new peak of 6,718.48 intraday.

Healthcare led gainers for a second day, up 3%.

Drugmakers extended gains a day after the White House unveiled a deal with Pfizer ( PFE ) under the Trump administration's "most-favored-nation" drug pricing policy, with Pfizer ( PFE ) committing to voluntary price reductions and a $70 billion US investment plan. Amgen ( AMGN ) , Merck & Co. (MRK), Regeneron (REGN), and Biogen (BIIB) were among the top gainers intraday in the S&P 500, the Nasdaq, and the Dow.

In economic news, ADP's monthly measure of private payrolls showed a decline of 32,000 in September, compared with expectations compiled by Bloomberg for a gain of 51,000. The retreat followed a downwardly revised 3,000 drop in August.

The S&P Global US manufacturing index for September was unrevised from the flash reading of 52.0, as expected in a survey compiled by Bloomberg, but it lagged the 53.0 print in August, indicating slower expansion.

Federal government shutdown impacts include delayed economic data releases critical for the Federal Reserve's upcoming rate decision, raising uncertainty about labor market conditions. The last shutdown, straddling 2018-19, lasted 35 days and reduced spending by $3 billion in Q4 of 2018 and another $8 billion in Q1 of 2019, Lindsey Piegza, chief economist at Stifel, said in a note Tuesday.

"The economic costs of government shutdowns are normally minimal unless they last for several weeks," Oxford Economics Chief US Economist Ryan Sweet said in a Tuesday note. However, the shutdown could leave the Federal Reserve uncertain about the labor market, "fueling support for an October cut," according to Sweet.

According to the CME Group's FedWatch Tool, the probability that the Federal Open Market Committee will cut interest rates by 25 basis points in October is 99% as of late Wednesday, up from 92% a week earlier.

The dollar weakened 0.5% to 147.12 against the Japanese yen.

US Treasury yields slumped, with the 10-year down five basis points to 4.1% and the two-year rate 6.5 basis points lower at 3.54%.

Technology and consumer discretionary, widely known to be prime beneficiaries of lower interest rates, were among the outperformers on Wednesday.

In energy news, West Texas Intermediate crude oil futures fell 0.7% to $61.92 a barrel.

In company news, BlackRock ( BLK )-owned (BLK) Global Infrastructure Partners is close to acquiring utility group AES ( AES ) in a roughly $38 billion deal, the Financial Times reported, citing people briefed on the matter. AES ( AES ) shares surged 17%, the top gainer on the S&P 500.