On September 10, 2025, a professional trader is seen working at the New York Stock Exchange.
Investors seem to be maintaining their positions as they aim to wrap up a surprisingly robust September, holding steady despite the looming possibility of U.S. government shutdowns this week.
Futures connected to the Dow Jones Industrial Average slipped by 3 points, or 0.01%. Meanwhile, S&P futures dipped by 0.02%, and Nasdaq 100 futures saw a slight decline of 0.03%.
Trading was halted on Monday due to concerns linked to a name involved in artificial intelligence, which had caused some volatility since last week. There were worries about the cyclical nature of AI stocks, which could pose challenges moving forward. Yet, some investors remain optimistic that strong earnings from the “magnificent seven” and other leading firms will continue to bolster market gains.
At the same time, the risk of federal government closures looms as the October 1 funding deadline draws near. Although shutdowns typically do not heavily impact the market, this situation may be different. Investors are already cautious given signs of a slowing labor market, risks of stagflation, and elevated stock valuations. A shutdown could prompt rating agencies to reassess the U.S. credit landscape, which Moody’s downgraded earlier in May.
“I think we’re headed for a shutdown because the Democrats aren’t taking appropriate steps,” stated Vice President JD Vance after a meeting between President Donald Trump and legislative leaders from both parties.
Additionally, the Labor Bureau announced that the September non-farm payroll report, expected to be released on Friday, would be postponed if the government shuts down. This report is significant as it provides crucial economic insights ahead of the Federal Reserve’s upcoming policy meeting in October. Concerns about the shutdown intensified after President Trump hinted over the weekend that it could lead to mass layoffs of federal employees.
Portfolio strategist Jack Janasiewicz expressed that government shutdowns might trigger “tangential effects” on short-term market sentiment and volatility.
He commented, “Delays in economic data collection due to a shutdown increase uncertainty, especially in a softening labor market where tariff impacts on inflation are being closely watched.”
“Such uncertainty might disrupt the economic backdrop, possibly increasing risks associated with assets. While likely not a lasting effect, extended uncertainty could escalate the risks involved,” he added.
Major U.S. stock indexes remain near record highs, with the S&P 500 climbing over 3% this month. The Dow Jones Industrial Average increased by 1.7%, while the tech-heavy Nasdaq Composite outpaced the others with a gain of around 5.3% for September.
Tuesday marks the end of the third quarter, with the broad index showing a 7.4% increase this quarter, and the NASDAQ boasting an impressive near-11% gain. Over three months, the Dow has grown by 1.7%, achieving its fifth consecutive quarter of positive performance.
Modification: Vail Resorts posted a fourth-quarter loss of $5.08 per share, while Progress Software reported revenue. Previous entries mistakenly identified the software related to Vail’s loss and its progress.
