Stocks Close Week in the Green Amid Analyst Upgrades and Downgrades

The S&P 500 closed in the green on Friday, with Nasdaq and Dow rising 1% and 0.4% respectively for the week. Wall Street saw upgrades and downgrades from analysts. J&J, PayPal, and Corteva were among the top picks.

On Friday, the S&P 500 closed in the green, with the Nasdaq and Dow Jones Industrial Average rising 1% and 0.4% respectively for the week. The market demonstrated resilience despite a partial U.S. government shutdown and weaker-than-expected job data.

The S&P 500 closed at a record high of 6,711.20, marking the fourth consecutive day of gains and extending the year-to-date climb to roughly 18% Market Record Rally Amid Shutdown: A Deep Dive into U.S. Stock Performance on 1 October 2025^[1]. The Nasdaq Composite, which benefited from a rebound in chipmakers, gained 0.42% to 22,755.16 . The Dow Jones Industrial Average rose 0.09% to 46,441.10, setting a new all-time closing high .

Healthcare stocks were the day’s star performers, surging 2.7% as investors rotated into the sector following a breakthrough deal between Pfizer and the White House to lower drug prices in exchange for tariff relief . Biogen jumped 10.9%, Thermo Fisher Scientific climbed 9.4%, Eli Lilly rallied around 9%, and AstraZeneca and Novo Nordisk gained roughly 10% and 7%, respectively .

The technology sector also posted respectable gains, with chipmaker Micron rising 8.9% and lifting the Philadelphia Semiconductor Index by 2% . However, the leadership was overtaken by health care. Other sectors showed mixed results, with utilities advancing about 1% thanks to a 17% rally in AES Corp., while materials fell more than 1% despite a 23% jump in Lithium Americas and a 4.2% rise in Albemarle .

Several individual names made headlines. Nike shares climbed 6%, beating earnings expectations on resilient consumer demand . Intel gained 7% after rolling out next-generation AI chips . Lithium Americas surged 23.3% when the U.S. government announced a 5% stake in its Nevada mine project; Albemarle rose 4.2% . Conversely, some stocks lagged. Online signature company DocuSign declined, unable to recover from the prior day’s selloff as investors worried about competition from generative AI systems (DocuGPT) . Fertilizer maker Corteva tumbled 9% after announcing a corporate split .

The market’s resilience came despite surprisingly weak economic data. The ADP payroll report showed private-sector employment falling by 32,000 jobs in September, compared with expectations for a 50,000 gain . Manufacturing activity hinted at recovery, with the ISM manufacturing index expected to edge up to 49.0, still signaling contraction but improving from prior months .

The government shutdown added uncertainty, potentially delaying key economic reports and complicating the Federal Reserve’s rate decisions. However, analysts were not overly concerned, noting that past shutdowns had limited market impact . The 10-year Treasury yield slipped to around 4.10%, reflecting expectations for looser monetary policy .

Analysts expect the bull market to continue, albeit at a slower pace. RBC Capital Markets raised its year-end 2025 S&P 500 target to 6,250 and kept its earnings forecast at $258 per share, citing expectations for 1.1–2% U.S. GDP growth . Goldman Sachs increased its 2025 target to 6,800 with 6- and 12-month return expectations of 5% and 8%, pointing to a dovish Fed and resilient earnings .