10-6-25 Monday Minute
By Dan Stober on October 6, 2025
Markets moved higher the first part of last week in the face of the looming Government shut down. The U.S. federal government officially shut down Wednesday morning after Congress failed to pass a budget for the next fiscal year. It’s the first shutdown since 2019, though partial suspensions of government operations have happened in recent years. Hundreds of thousands of government workers are being furloughed, while critical services (health care providers, border guards, military personnel, transportation workers and others) continue to work without guarantees of timely payment. Traders shrugged off the news on Wednesday and pushed stocks higher. Thursday and Friday markets were mixed as the shutdown continued. Nonfarm payrolls report due out Friday was delayed. Future economic numbers from government sources could also be impacted. The Chicago Fed’s new real-time unemployment rate tracker suggests the unemployment rate stayed steady at 4.3% in September. Markets have held up because weaker-than-expected jobs data supports a potential Federal Reserve interest rate cut, which the market loves. Markets rallied for the week, concluding both the third quarter and the month of September in the green. All three broad indices posted gains, led by healthcare and information technology sectors. Final weekly numbers were +1.1% for the DOW, +1.1% for the S&P 500, and the NASDAQ closed up 1.3%. We are now at day 6 of the government’s shutdown, but more pain needs to be felt before the shutdown can be resolved, including missed paychecks and slow TSA lines. If the current shutdown follows the same script as previous government closures, it will have no more than a temporary and marginal impact on the US economy and markets. Important economic releases this week include consumer credit, wholesale inventories, and the Michigan sentiment survey, along with the start of Q3 earnings season. Markets are higher to start trading.
https://www.cnbc.com/2025/10/05/stock-market-today-live-updates.html