Last week, the S&P 500 index rose 1.1% to its highest close ever, boosted by strong gains in the health care sector amid an agreement between Pfizer (PFE) and the Trump administration. The index is now up 14% for the year.
On Tuesday, the market benchmark ended September with a 3.5% gain, its fifth consecutive monthly increase. The index rose 7.8% in the third quarter.
The market started the final quarter of 2025 with health care stocks rallying after President Donald Trump said Pfizer agreed to provide some of its most popular medications at “heavily discounted prices.” The agreement was seen as lifting a cloud of uncertainty that had been hanging over the sector and is expected to be followed by deals with other drug makers.
The health care sector logged a 6.8% gain for the week, followed by a 2.4% increase in utilities and a nearly 2.3% rise in technology. Industrials, materials and real estate also edged higher.
On the downside, energy fell nearly 3.4%, followed by a 2.1% drop in communication services and a 0.8% decline in consumer discretionary. Consumer staples and financials also edged lower.
Earnings reports are expected this week from companies including PepsiCo (PEP), Delta Air Lines (DAL), Constellation Brands (STZ) and McCormick (MKC).
Some economic reports have been delayed by the U.S. government shutdown. The September jobs report had been due Friday but updates from the Bureau of Labor Statistics have been suspended until the government resumes operations.
Data scheduled for this week includes the August trade deficit, consumer credit and wholesale inventories. The minutes of the Federal Open Market Committee’s September meeting are also due to be released.
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