US open: Mixed start to trading as Federal Government shuts down
By Iain Gilbert
Date: Wednesday 01 Oct 2025
(Sharecast News) - Wall Street trading got off to a mixed start on Wednesday after the Federal government shut down overnight, raising fears of a potentially prolonged disruption and its impact on financial markets.
As of 1525 BST, the Dow Jones Industrial Average was up 0.07% at 46,429.00, while both the S&P 500 and Nasdaq Composite slipped 0.14% to 6,679.31 and 22,627.39, respectively.
The Dow opened 31.11 points higher on Wednesday, extending gains recorded in the previous session as the blue chip index attempts to extend its record-setting rally another session.
The Republican-controlled Senate failed to pass a temporary spending bill, with Democrats seeking to use the measure to extend healthcare tax credits. The Congressional Budget Office estimated that around 750,000 federal employees will be furloughed, while Donald Trump has warned that mass permanent job cuts would likely follow.
While markets have historically weathered shutdowns with limited volatility, this episode was seen as having the potential to prove more disruptive given elevated valuations, inflation risks, and signs of labour market softening. The length of the shutdown was expected to be a key focus, particularly with the Federal Reserve's next policy meeting scheduled for late October.
The Labor Department said it will suspend virtually all activity, including Friday's nonfarm payrolls report, leaving both investors and the Federal Reserve partially "flying blind", with markets currently pricing in a second rate cut later this month and another in December.
In the NFP report's absence, today's ADP private payrolls report will likely carry greater weight, with the data revealing that US private sector employment unexpectedly fell in September, declining by 32,000 from August, versus expectations for a 45,000 increase. Meanwhile, the August figure was revised to show that 3,000 jobs were lost rather than 54,000 created.
Small businesses with fewer than 50 employees shed 40,000 jobs, while medium businesses with between 50 and 499 employees lost 20,000 jobs and large business with more than 500 employees added 33,000 jobs. The data also showed that year-over-year pay growth for job-stayers was little changed in September at 4.5%. Pay gains for job-changers slowed to 6.6% from 7.1% in August, led by leisure and hospitality and financial activities.
Elsewhere on the macro front, US mortgage applications fell sharply last week, snapping a three-week rally, according to the Mortgage Bankers Association, as rising Treasury yields pushed borrowing costs higher. For the week ended 26 September, total mortgage application volume dropped 12.7% from the prior week, matching the steepest weekly decline in nearly a year and trimming a combined 42% surge in applications over the previous three weeks. Applications to refinance a mortgage, which are more sensitive to short-term rate movements, plunged 21% week-on-week, while applications to purchase new homes eased by 1%.
Still on data, S&P Global's US manufacturing PMI slipped to 52.0 in September from 53.0 in August, marking a modest slowdown from a three-year high and matching both the flash estimate and market consensus. New factory orders rose for a ninth consecutive month, though the pace of growth lagged the survey average, weighed down by weaker export demand. S&P said recent US tariffs had sparked trade tensions with key partners, leading to a drop in sales to Canada and Mexico. Output growth also eased during the month, driven by faster backlog depletion as firms worked through existing orders.
Finally, the Institute for Supply Management's manufacturing PMI rose to 49.1 in September from 48.7 in August, slightly ahead of market expectations but still marking a seventh straight month of contraction. The modest improvement was driven by a rebound in production, which climbed to 51.0 from 47.8, offset by a decline in new orders to 48.9 from 51.4. Input price pressures eased slightly to 61.9 from 63.7 but remained elevated, with respondents citing tariffs, high costs, and weak demand as key headwinds.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Merck & Co. Inc. (MRK) $87.18 3.88%
Nike Inc. (NKE) $72.17 3.49%
Amgen Inc. (AMGN) $291.99 3.47%
Visa Inc. (V) $347.30 1.73%
Intel Corp. (INTC) $34.04 1.46%
Salesforce.Com Inc. (CRM) $240.38 1.43%
Dow Chemical Co. (DOW) $23.11 0.78%
American Express Co. (AXP) $334.50 0.70%
Walt Disney Co. (DIS) $115.24 0.65%
Apple Inc. (AAPL) $255.92 0.51%
Dow Jones - Fallers
Walmart Inc. (WMT) $101.16 -1.84%
Chevron Corp. (CVX) $153.53 -1.13%
JP Morgan Chase & Co. (JPM) $312.01 -1.09%
Goldman Sachs Group Inc. (GS) $787.76 -1.08%
Microsoft Corp. (MSFT) $512.55 -1.04%
Procter & Gamble Co. (PG) $152.27 -0.90%
Cisco Systems Inc. (CSCO) $67.88 -0.79%
Home Depot Inc. (HD) $402.42 -0.68%
McDonald's Corp. (MCD) $301.90 -0.65%
Boeing Co. (BA) $214.59 -0.57%
S&P 500 - Risers
AES Corp. (AES) $14.95 13.60%
Regeneron Pharmaceuticals Inc. (REGN) $599.11 6.55%
IQVIA Holdings Inc. (IQV) $200.01 5.30%
Thermo Fisher Scientific Inc. (TMO) $507.83 4.70%
Biogen Inc (BIIB) $146.65 4.69%
Eli Lilly and Company (LLY) $797.69 4.55%
Lamb Weston Holdings, Inc. (LW) $60.67 4.46%
Albemarle Corp. (ALB) $84.69 4.46%
Illumina Inc. (ILMN) $99.04 4.29%
Bristol-Myers Squibb (BMY) $46.85 3.88%
S&P 500 - Fallers
News Corp Class B (NWS) $32.82 -5.01%
News Corp Class A (NWSA) $29.43 -4.17%
Idexx Laboratories Inc. (IDXX) $616.50 -3.50%
Dollar General Corp (DG) $100.04 -3.20%
Meta Platforms Inc. (META) $713.71 -2.81%
Raymond James Fin Corp. (RJF) $167.82 -2.77%
Royal Caribbean Cr (RCL) $314.70 -2.74%
Blackrock Inc. (BLK) $1,135.56 -2.60%
Edwards Lifesciences Corp. (EW) $75.91 -2.39%
Netflix Inc. (NFLX) $1,170.40 -2.38%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $599.11 6.55%
Biogen Inc (BIIB) $146.65 4.69%
Illumina Inc. (ILMN) $99.04 4.29%
Amgen Inc. (AMGN) $291.99 3.47%
Qvc Group Inc Series A (QVCGA) $13.88 2.89%
Biomarin Pharmaceutical Inc. (BMRN) $55.58 2.61%
Seagate Technology Plc (STX) $241.11 2.14%
Western Digital Corp. (WDC) $122.24 1.82%
Vertex Pharmaceuticals Inc. (VRTX) $398.20 1.68%
Applied Materials Inc. (AMAT) $207.88 1.53%
Nasdaq 100 - Fallers
Mercadolibre Inc. (MELI) $2,247.02 -3.85%
Idexx Laboratories Inc. (IDXX) $616.50 -3.50%
Meta Platforms Inc. (META) $713.71 -2.81%
Netflix Inc. (NFLX) $1,170.40 -2.38%
Adobe Systems Inc. (ADBE) $344.43 -2.36%
Dollar Tree Inc (DLTR) $92.17 -2.34%
CSX Corp. (CSX) $34.75 -2.14%
Paychex Inc. (PAYX) $124.08 -2.11%
Sirius XM Holdings Inc (SIRI) $22.94 -1.44%
Booking Holdings Inc. (BKNG) $5,323.13 -1.41%
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