Traders work on the floor of the New York Stock Exchange on Sept. 30th, 2025.<\/p>\n
NYSE<\/p>\n
Stock futures dropped Wednesday as investors assessed the ramifications of the U.S. government shutdown<\/a>.<\/p>\n Futures tied to the Dow Jones Industrial Average<\/a> fell 234 points, or 0.5%. S&P futures<\/a> and Nasdaq 100 futures<\/a> declined 0.6% and 0.7%, respectively.<\/p>\n Bank stocks fell broadly in the premarket follow the stoppage. JPMorgan Chase and Wells Fargo shed 0.5% each. Citigroup lost nearly 0.9%. Goldman Sachs and Morgan Stanley were also lower. <\/p>\n The U.S. government shut down after two attempts made by the Republican-controlled Senate failed to secure a temporary spending bill on Tuesday. Democrats are hoping to use the measure to codify an extension of health care tax credits<\/a> for millions of Americans.<\/p>\n The stock market has typically glided by previous government shutdowns \u2014 but this one could be riskier<\/a> given the slew of economic factors at play. Investors remain concerned about a slowing labor market and inflation risks as well as historically elevated stock valuations and market concentration levels. The nonpartisan\u00a0Congressional Budget Office\u00a0estimated<\/a> Tuesday that the shutdown will result in the furlough of about 750,000 federal employees. Over the weekend, Trump threatened mass firings<\/a> of federal workers under a shutdown.<\/p>\n This time around, the market is likely to focus on the length of the shutdown<\/a> since a prolonged closure could delay key economic data ahead of the Federal Reserve’s meeting in late October. The Labor Department said Friday it will shut down virtually all activity, meaning the September nonfarm payrolls report<\/a> would not be released at the end of the week. In the case of no jobs data, a reading on private sector job creation from payroll processing group ADP on Wednesday morning is expected to take on greater significance.<\/p>\n “The lack of government data, especially the all-important BLS jobs report on Friday, does lend a concern as it was due to be released during a recent period in which the labor market showed signs of weakening and was a catalyst for the Federal Reserve to reduce interest rates just a couple weeks ago,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.<\/p>\n “If past is prologue, however, these shutdowns usually end fairly quickly and pass without much dislocation to equity prices,” he continued. “In the meantime, investors will lean other data to corroborate evidence that the job market and the economy are stable.”<\/p>\n The stock market typically gains during government shutdowns<\/a>. Raymond James found that stocks have on average risen in the five previous government shutdowns, with the S&P 500, MidCap 400<\/a> and Small Cap 600 all gaining more than 3% over those time periods.<\/p>\n Separately, shares of Nike<\/a> were up more than 3% in premarket trading after the sneaker giant surprisingly beat earnings and revenue expectations<\/a> in its fiscal first quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"Traders work on the floor of the New York Stock Exchange on Sept. 30th, 2025. NYSE Stock futures…\n","protected":false},"author":2,"featured_media":172566,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[4117,84,273,39172,467,39174,45088,39173,77377,4118,56,54,55],"class_list":["post-172565","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-breaking-news-markets","tag-business","tag-business-news","tag-dow-jones-fut-sep25","tag-markets","tag-nasdaq-100-fut-sep25","tag-nike-inc","tag-sp-500-fut-sep25","tag-spdr-sp-midcap-400-etf","tag-stock-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/172565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=172565"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/172565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/172566"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=172565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=172565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=172565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}