US stock futures fell as the government shutdown hit markets.
The shutdown may delay key economic reports.
Gold, a haven investment, hit a record high — again.
US stock futures are lower after the US government shut down on Wednesday.
Here’s where US stock futures stand at 3:07 a.m. ET on Wednesday:
S&P 500: down 0.8% at 6,685.00Dow Jones: down 0.7% at 46,365.00Nasdaq: down 1% at 24,665.00
Haven asset gold hit a fresh record high of 3,875.53 per ounce, and the US Dollar Index was slightly lower.
Spot gold: $3,860.64 per ounceUS Dollar Index: down 0.3% at 97.52
History shows that markets generally take US government shutdowns in their stride. On Tuesday, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed in positive territory.
However, the shutdown could create practical concerns for market participants, as the US nonfarm payrolls are scheduled for release on Friday, wrote Deutsche Bank analysts on Wednesday.
“So as it stands, we won’t get a jobs report on Friday, as the BLS aren’t releasing new data,” they wrote.
Should the shutdown go on, other data sets, including inflation numbers — used to gauge the Federal Reserve’s interest rate decisions — could also be delayed.
“This could spell significant, even if only temporary, economic disruptions,” wrote Vishnu Varathan, Mizuho’s head of macro research for Asia excluding Japan, in a Tuesday note.
“A shutdown may inadvertently amplify risks of policy missteps due to data obfuscations amid interrupted fits and starts to economic momentum,” Varathan added.
