US Equity Indexes Trade Mixed as Treasury Yields Drop Ahead of Potential Federal Government Shutdown

01:34 PM EDT, 09/29/2025 (MT Newswires) -- US equity indexes traded mixed while government bond yields fell after midday Monday, ahead of the looming shutdown of the federal government.

The Nasdaq Composite rose 0.5% to 22,596.1, and the S&P 500 climbed 0.2% to 6,657.2. The Dow Jones Industrial Average, however, slipped 0.2% to 46,168.3. Energy was the standout decliner intraday, while technology and consumer discretionary led the gainers.

Scotiabank said the possibility of another US government shutdown by mid-week, ahead of Friday's non-farm payrolls for September, will be the main event this week in terms of calendar-based risk.

President Donald Trump is scheduled to meet with Democratic and Republican leaders in Congress later on Monday to negotiate an extension of government funding. If talks fail, the shutdown is expected to start on Wednesday, delaying the release of vital economic data. Speaker Mike Johnson signaled in an interview with CNN that Trump wants to use the meeting to sway Democrats into accepting the GOP's plan.

Meanwhile, Trump said he plans to impose "substantial tariffs" on countries that don't make furniture in the US. He also said, in a Truth Social post on Monday, that he will impose a 100% tariff "on any and all movies that are made outside of the United States," CNN reported.

Most US Treasury yields declined, with the 10-year down 4.4 basis points to 4.14% and the two-year rate 1.6 basis points lower at 3.63%.

In economic news, pending home sales jumped 4% in August, above the flat reading expected in a poll compiled by Bloomberg and following a 0.3% decline in July, according to the National Association of Realtors. The monthly sales index climbed 3.8% year-over-year.

AppLovin (APP) is set to launch a new ad platform for its non-gaming business, viewed as a "key catalyst" and "execution proof point" for growth, according to a Morgan Stanley note. The investment bank adjusted its price target on AppLovin's (APP) shares to $750 from $480 while maintaining its overweight rating. Shares of AppLovin (APP) were up 5.8% intraday, the top gainer on the Nasdaq.

Morgan Stanley also adjusted its price target on Western Digital's (WDC) shares to $171 from $99 while keeping its overweight rating. The stock traded 7.6% higher intraday, among the top performers on the S&P 500.

Electronic Arts (EA) has agreed to be acquired and taken private by an investor consortium, which includes Saudi Arabia's Public Investment Fund, in an all-cash deal worth $55 billion. Shares advanced 4.7% intraday, among the top gainers on the Nasdaq.

West Texas Intermediate crude oil futures sank 3.9% to $63.22 a barrel.

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