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Market Recap
WEEK OF SEP. 29 THROUGH OCT. 3, 2025
The S&P 500 index rose 1.1% last week 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 S&P 500 ended Friday's session at 6,715.79 and is now up 14% for the year. It also reached a record intraday high on Friday at 6,750.87.
Last 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.
Pfizer's shares climbed 15% on the week amid its deal with Trump. Other strong gainers in the health care sector included shares of Bio-Techne (TECH), up 21%; Charles River Laboratories (CRL), up 19%; and Thermo Fisher Scientific (TMO), up 17%.
In the utilities sector, shares of Constellation Energy (CEG) rose 8.7% as the company reached a $340 million agreement with the state of Maryland to fund environmental projects and operational improvements at the Conowingo Dam. The deal will allow the relicensing and continued operation of the hydroelectric facility on the Susquehanna River.
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.
The energy sector's drop came as crude oil futures also fell on a weekly basis. Stock decliners in the sector included Valero Energy (VLO), which fell 8.7%. The stock received an investment rating downgrade from Morgan Stanley to equal weight from overweight even as the firm raised its price target on the stock to $175 per share from $160.
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 US government shutdown. The September jobs report had been due this Friday but updates from the Bureau of Labor Statistics have been suspended until the government resumes operations.
Data scheduled for this week include 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.
