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postUS stock futures pulled back on Wednesday after the US government entered its first shutdown in seven years, putting hundreds of thousands of jobs and billions of dollars in output at risk. Meanwhile, key ADP jobs data showed private payrolls declined in September, widely missing estimates.
Futures on the Dow Jones Industrial Average (YM=F) fell around 0.2%, while those on the S&P 500 (ES=F) slid 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also lost 0.4%.
Stocks closed out their strongest third quarter since 2020 on Tuesday, but the mood has turned sour as Wall Street weighs the likely economic impact of the shutdown. The longer it lasts, the greater the likely hit to growth, as the fallout reaches the businesses that rely on the federal government’s daily output.
The shutdown comes at a potentially perilous time for the economy, as the ADP’s monthly employment report — in especially high focus Wednesday — showed private payrolls unexpectedly declined last month. The private sector lost 32,000 jobs, the report said, missing expectations for a gain of over 50,000.
Meanwhile, federal agencies will now implement contingency plans and send hundreds of thousands of workers home, amid warnings from President Trump that “a lot” of firings are to come.
Markets are watching the developments closely. Among the agencies whose work is set to be frozen is the Bureau of Labor Statistics, which gathers and reports economic data key to Federal Reserve policy decisions.
The BLS is set to release the September jobs report on Friday. But the nonfarm payrolls update is likely to be delayed, as BLS plans to “completely cease operations” with just one full-time employee kept in post.
The shutdown isn’t the only Trump policy push in focus on Wednesday, which marks the promised implementation of 100% tariffs on a range of pharmaceutical products and 25% duties on heavy-duty trucks.
LIVE 11 updates
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ADP private payrolls data misses estimates as job creation drags
Job creation in the labor market continued to lose momentum in September across most sectors, ADP reported on Wednesday.
New data showed that private employers shed 32,000 jobs in September — missing Wall Street estimates for 51,000 jobs created, according to analysts tracked by Bloomberg.
The biggest decline was in the hospitality field, which lost 19,000 jobs, though several sectors reported job losses. The bright spot continues to be education and health services, which gained 33,000 jobs in September.
A government shutdown has heightened the significance of the private payrolls report, as the Bureau of Labor Statistics will not publish the all-important monthly jobs report during the stoppage. As my colleague Hamza Shaban notes in today’s Morning Brief (see the blog below), the hole left by that missing data is expected to complicate the Federal Reserve’s policymaking.
Read more here.
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Private economic data is set to take on an even bigger role
Even before the latest threat of a government shutdown, policymakers and economists flagged a shift toward using more private data to get a picture of the US economy, writes Yahoo Finance’s Hamza Shaban.
He reports in the takeaway from today’s Morning Brief:
Read more here.
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Cal-Maine stock dives after the egg producer’s profit falls short of estimates
Cal-Maine Foods (CALM) stock dived 7% in premarket trading on Wednesday after its strong fiscal first quarter results were not strong enough to clear Wall Street analyst estimates.
The US’s largest egg producer recorded $4.12 per share in profit, compared to the average estimate on the Street of $5.10 per share, according to S&P Global Market Intelligence. Revenue of $922 million — a 17.4% increase year over year — was short of the $952 million expected.
The company noted that powerful consumer trends, like the growing demand for protein and focus on health and wellness, have supported US egg consumption. While bird flocks remain below their historical levels due to bird flu, Cal-Maine said supply is recovering.
Cal-Maine has worked to expand its specialty egg and prepared food offerings in recent quarters. Specialty egg sales, which made up nearly a third of Cal-Maine’s overall sales, rose 10.4% to $283.5 million. Prepared foods, such as pre-cooked egg patties and omelets, also saw significant growth. The segment grew 839% year over year to $83.9 million versus $8.9 million in fiscal 2025.
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While the government is closed, jobs and inflation data go unreported
The government shutdown is likely to push back the release of the jobs report and inflation data for September — closely watched not just by the Federal Reserve, but also Social Security recipients, note Yahoo Finance’s Emma Ockerman and Kerry Hannon.
They report:
Read more here.
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Dollar extends its losing streak as shutdown begins
The dollar (DX-Y.NYB) is heading for its longest losing streak in a month in an echo of past shutdowns.
Bloomberg reports:
Read more here.
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: AES, Wolfspeed and Sunrun
Here’s a look at some of the top stocks trending in premarket trading:
AES (AES) stock jumped 13% before the bell after the Financial Times reported that BlackRock (BLK)-owned Global Infrastructure Partners is nearing a $38 billion deal to buy utility group AES in what would be one of the largest infrastructure takeovers of all time.
Wolfspeed (WOLF) rose 3% before the bell after soaring 50% the day prior following the news the chipmaker had exited Chapter 11 bankruptcy with significantly less debt on its balance sheet.
Sunrun (RUN) stock rose 4% in premarket trading on Wednesday. The group recently announced the launch of its first vehicle-to- grid power plant.
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Lithium Americas stock surges after US government takes equity stake
Shares in Lithium Americas (LAC, LAC.TO) shot up over 30% on Wall Street early Wednesday after the US Department of Energy snapped up a 5% stake in the Canadian miner.
Lithium Americas said the DOE has also taken a separate 5% stake in the Thacker Pass lithium project in Nevada, a joint venture between the Vancouver-based company and General Motors (GM),
Reuters reports:
GM, which invested $625 million in the mine last year for a 38% stake, has the right to buy all of the project’s lithium from its first phase and a portion from the second phase for 20 years.
Read more here.
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US government shutdown begins after talks break down
Yahoo Finance’s Ben Werschkul takes a look at the potential economic impact of the funding stoppage that started early Wednesday:
Federal agencies will now implement their contingency plans and send hundreds of thousands of government workers home to wait out a stalemate.
Economic effects might be noticeable quickly as government spending largely ceases and economic data gets delayed, starting this Friday with what was scheduled to be a jobs report from the Bureau of Labor Statistics. These impacts could be mitigated if the stoppage ends promptly.
Trump on Tuesday also promised to heighten the potential effects of a shutdown — in part to pressure Democrats — saying “we can do things during the shutdown that are irreversible.”
He added later in the day “a lot of good can come down from shutdowns. We can get rid of a lot of things that we didn’t want.”
The shutdown is also not the only Washington policy focus for investors Wednesday. Markets will also be digesting new tariffs, as promised duties of 100% on a slice of pharmaceutical products and 25% duties on heavy-duty trucks are scheduled to go into effect.
This week also marked the last formal day on the job for government employees who accepted a Department of Government Efficiency program earlier this year called “fork in the road” that induced tens of thousands to leave government service.
Read more here.
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Nike stock pops as sales, earnings beat amid tariff headwinds
Nike’s (NKE) fiscal first quarter earnings and sales topped Wall Street estimates late on Tuesday.
The stock rose about 3% in premarket trading as investors welcomed the performance from the sneaker giant, which is navigating a major turnaround strategy under CEO Elliott Hill and President Trump’s tariffs.
Yahoo Finance’s Brooke DiPalma reports:
Read more here.
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Gold reaches new record price as government shutdown drives investors to secure assets
Bloomberg reports:
Read more here.
