U.S. Stocks Struggle Amid Looming Government Shutdown

NEW YORK, NY — U.S. stock indexes struggled Tuesday as a potential government shutdown loomed. The Dow Jones Industrial Average fell 0.2%, while the S&P 500 and Nasdaq Composite dipped 0.3% and 0.2%, respectively.

As Wall Street wrapped up September, a month that has seen solid gains, traders eyed updates from Congress amid concerns regarding funding. The deadline for a government funding decision is set for 12:01 a.m. ET Wednesday.

House Speaker Mike Johnson expressed skepticism about averting the shutdown, stating it depends on Senate and House leaders. In a recent interview, he commented, “If the government shuts down, it’s their decision to do it,” referring to congressional Democrats.

Financial analysts have warned that a government shutdown could result in delays for crucial economic data, including the Bureau of Labor Statistics’ September nonfarm payrolls report, scheduled for release Friday. The report is critical for assessing job market health, particularly after the economy lost jobs for the first time since 2020.

With economic conditions uncertain, investors are also wary about inflation and slow job growth. Jack Janasiewicz, a lead portfolio strategist, stated that a prolonged shutdown could significantly impact market sentiment.

Meanwhile, gold futures saw a surge, rising up to $3,875 per ounce as demand grew amidst the dollar’s weakness, which typically lifts the attraction for dollar-denominated gold. This marks gold’s seventh week of gains, indicating investor flight to safety.

In corporate news, shares of Nike fell ahead of its quarterly earnings report, while Pfizer stocks gained over 2% in anticipation of an announcement regarding reduced drug prices. The overall market sentiment remains cautious as traders await further developments.