FX.co ★ US Futures Drop as Government Shuts Down

U.S. stock futures experienced a significant decline on Wednesday in response to the government's first shutdown in nearly seven years. The deadlock arose as Republicans and Democrats were unable to reach an agreement on a temporary funding plan. This stalemate is projected to result in the furlough of approximately 750,000 federal employees, leading to an estimated $400 million per day in lost wages, as reported by the Congressional Budget Office. As a consequence, essential government services may face suspension, potentially delaying the release of Fridays' eagerly anticipated jobs report. With this data likely postponed, traders are turning their focus to ADP's employment figures, which are due for release later today. On Tuesday, the Dow saw a modest increase of 0.18%, the S&P 500 climbed by 0.41%, and the Nasdaq gained 0.3%, with all three indices wrapping up September and the third quarter with noteworthy gains. In corporate developments, Nike shares surged by 4.5% in after-hours trading, following the release of better-than-expected earnings and revenue for the first quarter.