U.S. stocks traded lower on Tuesday as concerns grew that the federal government was heading toward a shutdown, which could delay the release of key labor data.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was flat, the S&P 500 slipped 10 points (0.2%), and the NASDAQ Composite fell 65 points (0.3%).
Despite the dip, Wall Street’s main indexes remain near all-time highs. Markets are still set to end September higher, supported by expectations that the Federal Reserve will continue cutting interest rates and by strong enthusiasm for artificial intelligence.
So far this month, the S&P 500 has gained more than 3%, the Dow is up 1.7%, and the Nasdaq has outperformed with a rise of over 5%. For the third quarter, the S&P 500 is up 7.4%, the Nasdaq nearly 11%, and the Dow 1.7%, marking its fifth consecutive positive quarter.
U.S. Headed for Shutdown
The government will shut down if Congress fails to approve funding by Tuesday. Vice President JD Vance said talks between President Donald Trump and bipartisan leaders showed little progress. The deadlock centers on healthcare and social welfare spending.
Shutdowns have historically disrupted economic activity, though they have had little long-term effect on corporate earnings. The last shutdown in 2018–2019 lasted 35 days and cost the economy an estimated $11 billion.
A shutdown this week could delay September’s nonfarm payrolls report, a key indicator for future Fed policy. Investors also await the release of August JOLTS job openings data later today for clues on labor market strength.
New U.S. Tariffs
Adding to uncertainty, Trump announced new tariffs on imports of lumber, furniture, and kitchen fittings. The measures include a 10% tariff on softwood lumber, 25% on kitchen cabinets and vanities, and 25% on upholstered wooden products. These tariffs will take effect October 14.
Corporate Spotlight: Nike
After the bell, Nike (NYSE:NKE) will report quarterly earnings. Investors are watching closely for signs of progress in the company’s turnaround strategy under CEO Elliott Hill. Revenue for the fiscal first quarter is expected to fall in the mid-single digits, with renewed focus on running shoes and sneakers.
Oil Prices Under Pressure
Oil prices slipped Tuesday, adding to monthly losses. At 09:35 ET, Brent crude fell 1.4% to $66.15 per barrel, while U.S. WTI crude dropped 1.4% to $62.58. Both benchmarks had already declined more than 3% on Monday.
OPEC+ is reportedly considering a production increase of at least 137,000 barrels per day in November, adding to worries of oversupply.
