The federal government officially shut down overnight, marking a significant event after Congress failed to reach a funding agreement. This shutdown affects approximately 750,000 federal employees who are expected to be furloughed, according to the Congressional Budget Office. In a surprising turn, the Trump administration has indicated that some of these cuts could become permanent. As a result of the shutdown, the Bureau of Labor Statistics has paused several key economic data releases, including the much-anticipated nonfarm payrolls report initially scheduled for Friday. This government closure is likely to influence various sectors, from mortgage applications to airport security wait times and national park visits, with potential implications for consumers’ finances.
On the stock market front, September and the third quarter ended positively for investors, with the Dow closing at an all-time high. Tech stocks, particularly, surged, with the Nasdaq Composite appreciating over 5% during the month. However, stock futures are showing a downward trend as Wall Street begins to grapple with the implications of the government shutdown. Gold prices, often seen as a safe-haven asset in turbulent times, have risen to new highs. While the shutdown will delay government data releases, ADP’s private payroll report is still set to be published today, offering some insight into the labor market.
In corporate news, President Donald Trump announced a notable agreement with Pfizer, whereby the pharmaceutical giant will offer its medications at reduced prices in the U.S. Additionally, Medicaid patients will have access to Pfizer products at prices equivalent to those in other developed nations through a new website, TrumpRX.gov. This agreement also provides Pfizer a three-year reprieve from pharmaceutical tariffs, contingent on its continued investment in U.S. manufacturing. Following the announcement, Pfizer’s stock surged nearly 7%, marking its best performance in nearly two years.
Nike released its earnings report, revealing both positive and negative news for investors. The athletic apparel company exceeded Wall Street expectations and reported sales growth compared to the previous year, leading to a more than 4% surge in its stock during extended trading. However, Nike cautioned that sales are expected to decline during the crucial holiday quarter, raising concerns among investors about future performance in a pivotal shopping season.
In advisory news, Parsons Capital Management has been named the top firm on CNBC’s annual Financial Advisor 100 list. The firm’s president and CEO, John Mullen, attributed their success to a “white glove approach,” distinguishing them from competitors. The methodology behind the list is detailed in the report, with an emphasis on the independence of selection, as CNBC does not receive compensation for the firms featured.
In other noteworthy developments, Nvidia has made history by becoming the first company to achieve a market capitalization of $4.5 trillion, reflecting its significant influence and growth in the tech sector.
