(Adds market details after close of trading)

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Indexes close up: Dow 0.18%, S&P 500 up 0.41%, Nasdaq

0.31%

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Of 11 major S&P 500 industry sectors, 4 close in the red

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Health sector gains led by Pfizer ( PFE ) after deal with Trump

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Airline sector sells off as government shutdown

disruptions loom

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Firefly Aerospace ( FLY ) shares tumble after rocket test mishap

By Sinéad Carew and Niket Nishant

NEW YORK, Sept 30 (Reuters) - Wall Street's three major

indexes managed to close Tuesday's choppy session higher,

marking quarterly and monthly gains, even as investors braced

for a U.S. government shutdown, which would delay key economic

reports and muddy the Federal Reserve's interest rate policy

outlook.

With investors having bet for some time on a spate of

further Fed rate cuts, the benchmark S&P 500, the

tech-heavy Nasdaq and the Dow all gained for the

second quarter in a row. For the S&P 500 and the Dow, it also

marked their fifth straight monthly gain while the Nasdaq

registered its sixth straight monthly gain.

And with no signs of an end to the standoff in Washington, U.S.

President Donald Trump warned congressional Democrats that a

federal government shutdown at midnight would allow his

administration to take "irreversible" actions including shutting

down programs important to them. While previous shutdowns have

had a limited impact on markets, some analysts warned that this

time could be more disruptive, given the delicate economic

backdrop.

Earlier on Tuesday, a Labor Department report showed job

openings increased marginally in August, while hiring and

layoffs declined. Another data point showed U.S. consumer

confidence declined more than expected in September.

The latest jobs data did not suggest significant job losses,

but Mark Luschini, chief investment strategist at Janney

Montgomery Scott in Philadelphia, said, "it's a very balanced

market that could be tipped either way very quickly." He said

the market's leadership mix of defensive sectors such as

healthcare and consumer staples along with

more cyclical sectors such as industrials showed a

lack of "significant conviction directionally."

"Maybe there's some position-squaring in advance of the

prospect of a government shutdown," Luschini said. "Were that to

occur, and last beyond Friday, we'll start to accumulate

significant economic data such as the jobs report on Friday that

won't be released. That leaves investors a little bit in the

shadows with regard to what's going on on the ground."

The Dow Jones Industrial Average rose 81.82 points,

or 0.18%, to 46,397.89, marking its latest record closing high.

The S&P 500 gained 27.25 points, or 0.41%, to 6,688.46

and the Nasdaq Composite gained 68.86 points, or 0.31%,

to 22,660.01.

For the month the S&P 500 gained 3.53%, for its biggest

September percentage gain since 2010 while for the quarter it

gained 7.79%, for its biggest third-quarter gain since 2020.

For the quarter, the Nasdaq rose 11.24%, for its biggest

third-quarter gain since 2010 and the Dow climbed 5.22%.

For the month the Nasdaq rose 5.61%, and the Dow climbed

1.87%, for its biggest September gain since 2019.

Among the S&P 500's 11 major industry sectors, healthcare was

the leader, adding 2.45%. Its biggest gainer was Pfizer ( PFE ),

which rallied 6.8% after Trump said it will cut the price of all

prescription drugs in the Medicaid program for low-income

Americans and sell new prescription drugs at a "most favored

nation" price in exchange for tariff relief. Helping other

healthcare stocks to rally, Trump also said he expects other

drugmakers to follow suit.

The Dow Jones Transportation Average Index fell 0.4%,

with airlines leading declines due to the government shutdown

threat. A group representing major U.S. airlines had warned on

Monday that a partial federal government shutdown could strain

American aviation and slow flights, as air traffic controllers

and security officers would be forced to work without pay and

other functions would be halted. Southwest Airlines ( LUV )

shares fell 2.6% while United Airlines lost 2.2%.

In preparation for the shutdown, the U.S. Transportation

Department said that more than 11,000 employees at the Federal

Aviation Administration, about a quarter of its staff, will be

furloughed if government funding lapses at midnight, while more

than 13,000 air traffic controllers would be required to keep

working unpaid until the shutdown ended.

Earlier in the day, Fed Vice Chair Philip Jefferson warned that

the job market could face stress without central bank support,

while Boston Fed President Susan Collins said she was open to

additional rate cuts.

In individual stocks, chipmaker Wolfspeed ( WOLF ) surged 29% a

day after exiting bankruptcy. Firefly Aerospace ( FLY ) shares

sank 20.7% following a testing mishap that destroyed the core

booster for its centerpiece Alpha rocket.

Lamb Weston ( LW ) shares rose 4.3% after the frozen-potato

products maker beat analysts' estimates for first-quarter

revenue and profit.

Advancing issues outnumbered decliners by a 1.27-to-1 ratio

on the NYSE where there were 352 new highs and 87 new lows. On

the Nasdaq, 2,324 stocks rose and 2,367 fell as declining issues

outnumbered advancers by a 1.02-to-1 ratio.

The S&P 500 posted 48 new 52-week highs and 4 new lows while

the Nasdaq Composite recorded 104 new highs and 85 new lows.

On U.S. exchanges 18.56 billion shares changed hands on

Tuesday, compared with the 18.38 billion moving average for the

last 20 sessions.