Equities Conclude Robust Quarter with Moderate Gains – US Market Wrap

US equities logged a second consecutive winning quarter even as trading was muted for most of Tuesday’s session with a government shutdown looming.

The S&P 500 finished 0.4% higher after swinging between modest gains and losses for much of the day. The benchmark posted its strongest September in 15 years, powered by enthusiasm over artificial intelligence and prospects for lower borrowing costs. Treasuries advanced for a third straight quarter.

The dollar index was little changed for the month after sliding for three sessions in a row. Oil retreated as OPEC+ weighed accelerating its production increases in the months ahead.

Traders remain uneasy this week that a shutdown could postpone the release of Friday’s nonfarm payrolls report from the Bureau of Labor Statistics, muddying the Fed’s outlook on interest-rate reductions. Recent data have signaled a cooling labor market and inflation that is largely contained — though still above the Fed’s 2% objective. The BLS report would have given clearer signals on employment trends and, in turn, the pace of policy easing for the remainder of the year.

Traders are continuing to get snapshots this week of how the labor market is holding up. Tuesday’s JOLTS report showed US job openings were largely steady in August while hiring remained muted, signaling that demand for workers is easing. Data due Wednesday will offer further perspective on corporate hiring.