Wall Street Slips as U.S. Shutdown and Weak Jobs Data Rattle Markets

 

U.S. stock futures fell Wednesday as investors reacted to the federal government’s first shutdown in seven years and a surprise decline in private-sector employment.

Futures tied to the Dow Jones Industrial Average slipped about 0.2%, while contracts on the S&P 500 and Nasdaq 100 each dropped around 0.4%. The downturn comes just a day after Wall Street closed out its strongest third quarter since 2020.

The shutdown, triggered by a failed spending deal in Congress, has forced hundreds of thousands of federal workers off the job and raised concerns about delayed economic data releases. The Bureau of Labor Statistics, for example, is expected to halt operations, likely postponing Friday’s nonfarm payrolls report.

Adding to the unease, payroll processor ADP reported that private employers unexpectedly cut 32,000 jobs in September, missing forecasts for a gain of more than 50,000. Losses were concentrated in hospitality and other service industries.

Analysts warn that the combination of political gridlock and weakening labor momentum could weigh heavily on growth if the shutdown drags on. Investors are now watching closely for signs of how long the impasse may last — and how the Federal Reserve will respond with its next policy moves.