{"id":2142,"date":"2025-10-01T15:05:53","date_gmt":"2025-10-01T15:05:53","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2142"},"modified":"2025-10-01T15:05:53","modified_gmt":"2025-10-01T15:05:53","slug":"as-u-s-government-shutdown-begins-wall-street-braces-for-potential-impact-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2142","title":{"rendered":"As U.S. government shutdown begins, Wall Street braces for potential impact – National"},"content":{"rendered":"

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U.S. stocks are drifting on Wednesday following the latest discouraging signal on the job market.<\/p>\n

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The S&P 500 fell 0.3 per cent in early trading, though it remains near its record set last week. The Dow Jones Industrial Average was down 51 points, or 0.1 per cent, as of 9:35 a.m. Eastern time, a day after setting its own all-time high. The Nasdaq composite was 0.4 per cent lower.<\/p>\n

The action was stronger in the bond market, where Treasury yields sank after a report suggested hiring may have been much weaker across the country last month than economists expected.<\/p>\n

Employers outside the government actually cut 32,000 jobs more than they added, according to the survey by ADP Research, with the hardest hits focused in the Midwest.<\/p>\n

What\u2019s worse, the survey also revised down its numbers for employment in August, down to a loss of 3,000 jobs from a previously reported gain of 54,000.<\/p>\n

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The ADP survey gets its numbers from a smaller sample of employers than the U.S. government does for its monthly jobs reports, and the ADP\u2019s does not have a perfect track record predicting what the more comprehensive Labor Department\u2019s will say each month.<\/p>\n

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Usually, traders on Wall Street wait for the U.S. government\u2019s report to suss out more fully how the job market is doing each month. But the next one, scheduled for Friday, is likely to be delayed because of the shutdown of the U.S. government that began just after midnight. The Department of Labor has said that the Bureau of Labor Statistics will completely cease operations if there\u2019s a lapse.<\/p>\n

\u201cWhether this is an accurate statistic or not, people in the markets believe that it signals something,\u201d according to Carl Weinberg, chief economist at High Frequency Economics. \u201cThe signal from today\u2019s headline will not be a good one.\u201d<\/p>\n

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The hope on Wall Street has been that the job market will continue to slow by a very precise amount: enough to convince the Federal Reserve to keep cutting interest rates, but not by so much that it brings a recession.<\/p>\n

That\u2019s a delicate balance to achieve, and every report from the U.S. government on the economy that gets delayed only increases the uncertainty about whether it\u2019s possible.<\/p>\n

To be sure, the stock market and economy have typically powered through past shutdowns relatively well, particularly if they are short in duration. But this shutdown could be different in a couple ways, including the threat that the White House may use it to push for large-scale firings of federal workers.<\/p>\n

On Wall Street, Cal-Maine Foods dropped 2.6 per cent after its profit and revenue for the latest quarter fell short of analysts\u2019 expectations. That was even though the egg company delivered its strongest-ever first quarter.<\/p>\n