US Market News Digest for October 1, 2025

[Ben Graham]

Shutdown and its economic consequences

A government shutdown has been declared in the United States due to the lack of a funding agreement, resulting in the closure of government institutions and potential mass layoffs. Economists warn of risks to the labor market and financial markets in this environment of uncertainty. Analysts note that a prolonged shutdown could negatively impact GDP growth in the fourth quarter. Additionally, it increases pressure on politicians, as investors demand quick solutions to stabilize the situation. Read more at the link.

Index records and declining futures

The S&P 500 and Nasdaq stock indices ended the quarter at new highs, but futures declined after the shutdown-prevention deadline passed, creating an atmosphere of uncertainty and risk for the publication of key economic data. Investors fear that delays in the release of statistics may impact Fed decisions. Despite record highs, there remains a risk of a short-term correction if the crisis drags on. Meanwhile, market participants are focusing on corporate earnings forecasts in the upcoming reporting season. Read more at the link.

Stock market and hopes for pharma support

The US shutdown—despite its negative consequences—is underpinned by hopes for positive news from pharmaceutical companies, which has temporarily lifted stock indices. However, experts warn of risks to business and the economy. The healthcare sector could become a driver of growth amid instability. Nevertheless, long-term prospects remain in question if the political crisis is not resolved soon. Read more at the link.

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