Losses recorded contracts Future Following Following (Futures) of USA After Congress has failed to agree on a plan for forcing the government to close hundreds of thousands of federal employees at home from their jobs.
Specifically, the future fulfillment contracts of the S&P 500 index fell 0.4% to 1:02 am. On Wednesday (1.10.25), after the deadline for the funding of the US government at midnight in New York. Nasdaq 100 contracts fell 0.5%, according to Bloomberg sources.
Closing the economy threatens to disrupt a rally that has led the S&P 500 reference index to a 14% rise this year. This is as US shares have already shown signs of recession and as questions about labor market power increase. It is also able to delay the publication of basic financial data, including an employment report scheduled for Friday (3.10.25), which would have clarified market expectations for the next move by the US Federal Bank on interest rates.
“Only the uncertainty around the closure will increase. This should create an increase in volatility as we move on to the new quarter » If payroll items are delayed, Matt Maley saidMiller Tabak + Co.
The government’s closure can increase the US unemployment rate to 4.7% from its last 4.3% reading, according to Bloomberg Economics estimates. US President Donald Trump has increased the spectrum of long -term economic pain by threatening with mass redundancies for many workers, rather than unpaid licenses.
The shares have faced methodical problems during the closure periods in the past: on average they have changed little, according to data gathered by Truist. In the short term, there is a risk of instability for defense contractors and government -dependent consulting companies for their revenue, as well as for airlines who are at risk of losing the business and entertainment trips of federal employees.
Impact of Government Expections on US Shares
A prolonged Lockdown would cause problems in areas such as the industry and the financial industry, which are closely linked to the health of the economy, according to BCA Research’s Matt Gertken. It also increases the likelihood of the crisis spreading.
“The shutdown duration is the key. Shares tend to be weakened in larger lockdowns while interest rates tend to grow », Citigroup said to customers on Tuesday (30.9.25).