U.S. stock futures were lower early Wednesday as traders assessed the fallout from the U.S. government shutdown. A failure between the Democrats and Republicans to reach a deal on a temporary spending bill on Tuesday led to the federal shutdown.
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Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 0.78%, 0.65%, and 0.56%, respectively, at 4:50 a.m. EST on October 1.
A government failure could have far-reaching effects on the economy, especially if it lasts for an extended period. According to the Congressional Budget Office, about 750,000 federal employees could be furloughed in a shutdown, including staff from the Bureau of Labor Statistics (BLS). This means that September’s nonfarm payrolls data will not be released as expected this Friday.
The U.S. economy is already grappling with a weak labor market, and the absence of this data could complicate the Federal Reserve’s upcoming interest rate decision.
During Tuesday’s regular trading session, all three major indexes ended the session higher, wrapping up an unusually strong September. The Nasdaq, the S&P 500, and the Dow Jones rose by 0.30%, 0.41%, and 0.18%, respectively.
For the month, the indexes finished with strong gains, reflecting positive market momentum. The Nasdaq Composite rose about 5.6%, the S&P 500 gained around 3.5%, and the Dow Jones increased by approximately 1.9%.
Looking ahead, investors await the release of the ADP employment change data today, which reflects private-sector job creation. Additionally, the final U.S. manufacturing PMI, auto sales, and construction spending reports are scheduled for release today.
Turning toward earnings, Conagra Brands (CAG) and Cal-Maine Foods (CALM) are set to report quarterly results today.
Meanwhile, the U.S. 10-year Treasury yield was up, floating near 4.15%. WTI crude oil futures were trending higher, hovering near $62.77 per barrel as of the last check. Additionally, the Gold Spot U.S. dollar price increased to nearly $3,921 per ounce on Wednesday.
Elsewhere, European stocks opened mixed on October 1, as traders evaluated the U.S. political showdown.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific markets traded mixed Wednesday as investors reacted to a mix of economic signals and concerns over the U.S. government shutdown. Chinese markets remained closed due to the National Day holiday.
Hong Kong’s Hang Seng index advanced 0.63%. Meanwhile, Japan’s Nikkei dropped 0.85%, and the Topix lost 1.37%.
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