FX.co ★ US Stocks Lower as Government Shuts Down

On Wednesday, U.S. stocks experienced a downturn, with the S&P 500 and Nasdaq both declining by nearly 0.3%, while the Dow Jones dropped close to 60 points. This decline coincided with the onset of the federal government’s first shutdown in nearly seven years, a result of unsuccessful negotiations between Republicans and Democrats to secure a temporary funding agreement. As a consequence, key government services have been halted, postponing the release of critical economic indicators, including the anticipated jobs report set for Friday. Concurrently, data from ADP revealed an unexpected loss of 32,000 jobs in the U.S. private sector during September, contrary to predictions of a 50,000-job increase, signaling a more significant slowdown in the labor market than previously anticipated. Among sectors, communication services faced the steepest declines, whereas the healthcare sector performed relatively well. Notably, Meta's share price dropped by over 2%, and banking institutions, such as JPMorgan, also faced pressure, with a decrease of 1.9%. In contrast, Pfizer saw a 1% increase following a new agreement with the Trump administration, allowing patients access to discounted prescription medications via a federal website.