US stocks closed mixed with the Dow Jones index slightly higher after a string of strong earnings reports attracted investors to the industrials and capital goods sectors.
The S&P 500 index was flat at the close, while weakness in growth stocks and microchips pushed the tech-heavy Nasdaq to a slightly lower close.
The third-quarter earnings season is in full swing as giants such as General Motors, GE Aerospace, 3M and Coca-Cola announced encouraging results.
General Motors shares rose 14.9% after the automaker raised its forecast and eased concerns about expected tariff hikes.
Coca-Cola shares rose 4.1% after posting better-than-expected results on strong demand, while 3M rose 7.7% after raising its annual forecast due to a focus on high-margin products and cost-control measures.
Aerospace and defense companies such as Lockheed Martin, Northrop Grumman and RTX all raised their forecasts, driven by strong demand for military equipment.
The Dow Jones Industrial Average rose 0.47% to 46,924.74, the S&P 500 was flat at 6,735.35, while the technology-focused Nasdaq fell 0.16% to 22,953.67.
In other developments, the government shutdown, now in its third week, has left investors, economists and policymakers in limbo due to a lack of official data, complicating the Federal Reserve's data-dependent efforts.
The central bank is expected to cut interest rates two more times this year, according to a Reuters poll of economists, with analysts remaining divided on the Fed's policy direction through 2026.
Meanwhile, US President Donald Trump also expressed confidence in reaching a "fair deal" with Chinese President Xi Jinping, while seeking to ease tensions with Taiwan.
Markets are also looking ahead to Trump's meeting with Xi on the sidelines of an economic summit next week in South Korea.
Trading volume on US exchanges was worth $19.73 billion, compared to an average of $20.26 billion over a 20-day trading period.
