Choppy trading dominated much of the day as investors closely watched Washington, where lawmakers are struggling to prevent a government shutdown. Democrats are pushing for a temporary funding bill to extend enhanced Obamacare tax credits, while Republicans want the matter debated afterward, fueling market uncertainty.

Late-day gains on Wall Street reflected hopes for a last-minute deal or minimal economic impact from a shutdown. Meanwhile, U.S. consumer confidence fell more than expected in September, dropping to its lowest level since April 2025, but traders largely shrugged off the decline.

Pharmaceutical stocks moved sharply higher driving the NYSE Arca Pharmaceutical Index up by 3.7% to a six-month closing high. Pfizer (PFE) helped lead the sector higher, soaring by 6.8% after announcing an agreement with the Trump Administration the drug giant said will ensure U.S. patients pay lower prices for their prescription medicines. Healthcare stocks displayed substantial strength, as reflected by the 2.4% surge by the Dow Jones U.S. Health Care Index. Biotechnology, computer hardware and networking stocks too were considerably strong while oil producer and banking stocks showed notable moves to the downside.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.3% while China's Shanghai Composite Index rose by 0.5%. European stocks moved mostly higher on the day. While the French CAC 40 Index inched up by 0.2%, the U.K.'s FTSE 100 Index and the German DAX Index climbed by 0.5% and 0.6%.

In the bond market, treasuries showed a lack of direction over the course of the session. The yield on the benchmark ten-year note, which moves opposite of its price, eventually ended the day up by less than a basis point at 4.14%.