"To some extent investors are conditioned to a certain amount of drama and if we can get the drama behind us quickly it won't be a big deal," said Dean Junkans, Chief Investment Officer for Wells Fargo Private Bank. "If this goes beyond the middle of next week, the market will get increasingly more worried about the debt ceiling."
In other stock trading, the Russell 2000, an index of small-company stocks, rose to a record level, a sign that investors are still willing to buy riskier assets despite the government slowdown.
The Russell rose 13.64 points, or 1.3 percent, to 1,087.43.
In government bond trading, the yield on the 10-year note rose to 2.65 percent from 2.61 percent late Monday.
The price of oil fell 29 cents, or 0.3 percent, to $102.04 a barrel. Gold fell $40.90, or 3 percent, to settle at $1,286.10 an ounce.
The dollar fell against the euro and the Japanese yen.
Among other stocks making big moves:
— Walgreen rose $2.44, or 4.5 percent, to $56.24 after the drugstore chain said its fiscal fourth-quarter earnings soared 86 percent after it booked gains from its method of inventory accounting and its acquisition of a stake in European health and beauty retailer Alliance Boots.
— Ford gained 32 cents, or 1.9 percent, to $17.19 after the automaker said that U.S. sales rose 6 percent in September, with strong car sales making up for slower sales of SUVs.
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