Dow futures tanked 230 points on Wednesday as the government entered its first shutdown in nearly seven years, stirring market unease.
The sentiment was seen across all US stock futures as the S&P 500 futures slipped 50 points, while Nasdaq futures took a sharper plunge of over 180 points.
The investors turned cautious as the government shutdown is expected to delay the release of key economic data, including the September jobs report, which hinders investors’ ability to gauge the Federal Reserve’s policy path.
In the past, the shutdown had a minimal impact on stock markets as investors took a long-term view, but nobody likes the uncertainty around a political deadlock.
5 things to know before Wall Street opens
1. The US government shutdown took effect on October 1, 2025, after Congress failed to agree on a funding bill. The shutdown will impact thousands of federal employees and halt ongoing projects.
Essential services like border protection, emergency medical care, law enforcement, and air traffic control continue, but without immediate pay.
The shutdown is a result of political deadlock between Democrats and Republicans over healthcare funding and spending priorities.
2. Ryvyl Inc. (RVYL) stock is leading the pre-market trading on Wednesday as it surged 104.19%, while Galaxy Payroll Group Limited (GLXG) displayed gains of up to 36%.
Other notable gainers were 3 E Network Technology Group Limited (MASK) and Nova Minerals Limited (NVA), rising 26.85% and 22.93%, respectively.
On the downside, major losers featured, CollPlant Biotechnologies Ltd. (CLGN) down 11%, and Applied DNA Sciences, Inc. (APDN) dropping 1.55%.
3. The US economic outlook remains mixed amid developing challenges and dynamic issues.
GDP growth remained robust at nearly 4%, driven by technology and productivity gains, while job creation stayed minimal, fueling cautious consumer sentiment.
The government shutdown has added another layer of uncertainty, but despite these headwinds, certain sectors like technology and lithium-related stocks are showing resilience.
The Federal Reserve’s stance and evolving global trade conditions will continue to influence market direction and economic performance.
4. Wall Street indices are showing technical signs of a dip amid uncertainty from the US government shutdown, making it a good opportunity for beginners to test the waters.
The S&P 500 struggled near the 6600 level, facing resistance from overbought conditions indicated by the Relative Strength Index (RSI) surpassing 70.
The Dow Jones hovered just above 46,000, with the moving averages suggesting a sideways trend.
The Nasdaq Composite saw more pronounced weakness, pressured by high-growth technology stocks retreating from recent highs. Trading volumes were moderate, with key support levels tested but holding firm.
5. The US government shutdown weighed in on the market sentiment across the globe, with Asian markets remaining mixed on Wednesday.
Japan’s Nikkei was down 1% after a strong quarter, and South Korea’s Kospi rising 0.9% supported by robust export data.
Chinese and Hong Kong markets remained closed for holidays.
European stocks edged higher, led by pharmaceutical shares rallying on new US drug policy announcements. Oil prices stabilized as traders balanced OPEC supply plans against falling US inventories.
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