US stocks pulled back slightly on Wednesday after the US government entered its first shutdown in seven years, putting hundreds of thousands of jobs and billions of dollars in output at risk. Meanwhile, key ADP jobs data showed private payrolls declined in September, widely missing estimates.

The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) nudged down just over 0.1%. The Dow Jones Industrial Average (^DJI) was roughly flat.

The sluggish morning for the major gauges comes after stocks closed out their strongest third quarter since 2020 on Tuesday.

The mood has turned sour as Wall Street weighs the expected economic impact of the government shutdown. The longer it lasts, the greater the likely hit to growth, as the fallout reaches the businesses that rely on the federal government's daily output.

The shutdown comes at a potentially perilous time for the economy, as the ADP's monthly employment report — in especially high focus Wednesday — showed private payrolls unexpectedly declined last month. The private sector lost 32,000 jobs, the report said, missing expectations for a gain of over 50,000.

Meanwhile, federal agencies will now implement contingency plans and send hundreds of thousands of workers home, amid warnings from President Trump that "a lot" of firings are to come.

Markets are watching the developments closely. Among the agencies whose work is set to be frozen is the Bureau of Labor Statistics, which gathers and reports economic data key to Federal Reserve policy decisions.

The BLS is set to release the September jobs report on Friday. But the nonfarm payrolls update is likely to be delayed, as BLS plans to "completely cease operations" with just one full-time employee kept in post.

The shutdown isn't the only Trump policy push in focus on Wednesday, which marks the promised implementation of 100% tariffs on a range of pharmaceutical products and 25% duties on heavy-duty trucks.

Reddit (RDDT) stock fell as much as 8% in early trading Wednesday, extending a 5% decline from the previous trading session amid new data that showed the use of its content in leading AI chatbot ChatGPT had plummeted in mid-September.

Reddit content was cited in just 2% of ChatGPT responses on Tuesday, much lower than the 9.7% of ChatGPT responses that cited Reddit the same day last month, according to data from AI search engine tracker Promptwatch. At its peak in September, Reddit was cited in more than 14% of ChatGPT answers.

Read the full story here.

US stocks pulled back on Wednesday at the open.

The tech-heavy Nasdaq Composite (^IXIC) led losses, dropping around 0.4%, while the S&P 500 (^GSPC) slid 0.3%. The Dow Jones Industrial Average (^DJI) fell around 0.1%.

The declines come after the US government began its first shutdown in almost seven years and an ADP report showed private payrolls unexpectedly declined in September.

Yahoo Finance's Brian Sozzi and Francisco Velasquez report:

Ford (F) CEO Jim Farley says US buyers aren't interested in $75,000 electric vehicles — and the automaker doesn't want to keep living in Tesla's (TSLA) shadow.

\\"We've learned ... people are not willing to pay [a] $30,000 premium for that big battery on a [$50,000], $60,000 utility,\\" Farley told Yahoo Finance at Ford's Accelerate Pro conference in Detroit, Mich. \\"But they're willing to buy a $30,000 EV if they save $2,000 a year compared to gas costs.\\"

Farley's comments underscore the challenges Ford faces as it pushes further into EVs. While global EV demand grows, price sensitivity is shaping which models will succeed.

The CEO said the automaker has been \\"No. 2 to Tesla for three years\\" and is taking lessons from that experience to better align with consumer demand.

Read more here or watch the full interview with Ford CEO Jim Farley.

Job creation in the labor market continued to lose momentum in September across most sectors, ADP reported on Wednesday.

New data showed that private employers shed 32,000 jobs in September — missing Wall Street estimates for 51,000 jobs created, according to analysts tracked by Bloomberg.

The biggest decline was in the hospitality field, which lost 19,000 jobs, though several sectors reported job losses. The bright spot continues to be education and health services, which gained 33,000 jobs in September.

A government shutdown has heightened the significance of the private payrolls report, as the Bureau of Labor Statistics will not publish the all-important monthly jobs report during the stoppage. As my colleague Hamza Shaban notes in today's Morning Brief (see the blog below), the hole left by that missing data is expected to complicate the Federal Reserve's policymaking.

Read more here.

Even before the latest threat of a government shutdown, policymakers and economists flagged a shift toward using more private data to get a picture of the US economy, writes Yahoo Finance's Hamza Shaban.

He reports in the takeaway from today's Morning Brief:

Of all the ways a government shutdown can disrupt the economy, market watchers should be aware of one in particular: an absence of critical new data.

Right alongside furloughs and a pause in operations is the interruption of crucial work product, including the data that central bankers, corporate executives, analysts, and investors rely upon to interpret the economy and make decisions about money. ...

But even before the latest threat of a government shutdown, policymakers and economists have signaled a shift toward using a wider variety of data sources, such as private-sector data from ADP’s private payrolls, out Wednesday morning.

Those data holes — or at least the labor market ones — are getting filled.

In a speech last month, Federal Reserve governor Christopher Waller, who is in the running to become the next chair of the central bank, said he uses ADP figures to assess the labor market, which he sees as continuing to deteriorate.

And after US private payroll numbers published by ADP earlier in the summer also appeared to catch the weakening in the labor market before the government revised its own data, Waller’s approach seems particularly canny.

Read more here.

Cal-Maine Foods (CALM) stock dived 7% in premarket trading on Wednesday after its strong fiscal first quarter results were not strong enough to clear Wall Street analyst estimates.

The US's largest egg producer recorded $4.12 per share in profit, compared to the average estimate on the Street of $5.10 per share, according to S&P Global Market Intelligence. Revenue of $922 million — a 17.4% increase year over year — was short of the $952 million expected.

The company noted that powerful consumer trends, like the growing demand for protein and focus on health and wellness, have supported US egg consumption. While bird flocks remain below their historical levels due to bird flu, Cal-Maine said supply is recovering.

Cal-Maine has worked to expand its specialty egg and prepared food offerings in recent quarters. Specialty egg sales, which made up nearly a third of Cal-Maine's overall sales, rose 10.4% to $283.5 million. Prepared foods, such as pre-cooked egg patties and omelets, also saw significant growth. The segment grew 839% year over year to $83.9 million versus $8.9 million in fiscal 2025.

The government shutdown is likely to push back the release of the jobs report and inflation data for September — closely watched not just by the Federal Reserve, but also Social Security recipients, note Yahoo Finance's Emma Ockerman and Kerry Hannon.

They report:

The longer the shutdown stretches on, the bigger a deal it will be for those awaiting the data. September’s initial jobs data has already been collected and essentially just needs someone in the government to hit publish, Oxford Economics chief US economist Ryan Sweet told Yahoo Finance.

While there’s “never a good time for the government to shut down,” the current moment is especially inopportune, he said. The Federal Reserve, which cut rates in September, is closely monitoring the health of the labor market and meets again in late October.

“The Fed is always setting monetary policy in a data fog, but then it just thickens when you’re not getting the employment numbers,” Sweet said.

Meanwhile, a shutdown could also delay the release of September’s inflation data, set to be announced Oct. 15, as well as the subsequent 2026 cost-of-living adjustment (COLA) for Social Security benefits.

“While Social Security payments themselves are not affected by a shutdown, a delayed or inaccurate COLA announcement could create uncertainty for tens of millions of retirees and beneficiaries who depend on the adjustment to keep pace with rising living costs,” said Shannon Benton, executive director of The Senior Citizens League.

Read more here.

The dollar (DX-Y.NYB) is heading for its longest losing streak in a month in an echo of past shutdowns.

Bloomberg reports:

The Bloomberg Dollar Spot Index slipped for a fourth day, down 0.2% to a one-week low. The greenback weakened against all of its Group-of-10 peers, with the yen leading gains to climb to a two-week high.

History shows shutdowns typically weigh on the greenback, a pattern echoed in options markets. Risk reversals — which measure the gap in demand between bullish and bearish trades — are signaling further downside risks over the next month.

Any fall in equities (^GSPC) and a rally in Treasuries (^TNX) may be modest but “the one market where we would not look to fade the market move is FX,” said Mohit Kumar, chief European strategist at Jefferies, who expects dollar weakness to persist.

The duration of the shutdown matters, as the longer it lasts the greater the pressure on the dollar. The greenback has already slumped this year to the lowest since 2022 as unpredictable policy making under President Donald Trump, escalating deficits and pressure on the Federal Reserve’s independence worry investors.

Read more here.

Economic data: MBA mortgage applications (week ended Sept. 26); ADP private payrolls (September); S&P Global US manufacturing PMI (September); ISM manufacturing PMI (September); Construction spending (August); Wards total vehicle sales (September)

Earnings calendar: RPM International (RPM), Acuity (AYI), Levi Strauss (LEVI), Conagra Brands (CAG)

Here are some of the biggest stories you may have missed overnight and early this morning:

The US government has entered its first shutdown in 7 years

Shutdown: Private economic data to take on a bigger role

Why a shutdown delay to jobs and inflation data matters

How a government shutdown will affect your money

What to watch in markets as US government shuts down

Tesla hikes US lease prices after tax credit expires

Dollar extends losing streak as US government shutdown begins

Samsung, SK Hynix to supply chips to OpenAI's Stargate project

Gold surges to record as shutdown boosts havens

US takes 5% stake in Lithium Americas, stock spikes

Bristol Myers, Takeda to pool data for AI-based drug discovery

Here's a look at some of the top stocks trending in premarket trading:

AES (AES) stock jumped 13% before the bell after the Financial Times reported that BlackRock (BLK)-owned Global Infrastructure Partners is nearing a $38 billion deal to buy utility group AES in what would be one of the largest infrastructure takeovers of all time.

Wolfspeed (WOLF) rose 3% before the bell after soaring 50% the day prior following the news the chipmaker had exited Chapter 11 bankruptcy with significantly less debt on its balance sheet.

Sunrun (RUN) stock rose 4% in premarket trading on Wednesday. The group recently announced the launch of its first vehicle-to- grid power plant.

Shares in Lithium Americas (LAC, LAC.TO) shot up over 30% on Wall Street early Wednesday after the US Department of Energy snapped up a 5% stake in the Canadian miner.

Lithium Americas said the DOE has also taken a separate 5% stake in the Thacker Pass lithium project in Nevada, a joint venture between the Vancouver-based company and General Motors (GM),

Reuters reports:

While the total deal value was not disclosed, Lithium Americas confirmed it has finalized an agreement with the DOE to initiate the first $435 million draw from a previously announced $2.26 billion loan to support development of the Thacker Pass site.

It will be the latest private sector investment by President Donald Trump's administration after recent stakes in Intel (INTC) and MP Materials (MP), seeking to boost industries seen as vital to US national security.

Last week, administration officials were in discussions with Lithium Americas about an equity stake as they renegotiated terms of a $2.26 billion government loan for the Nevada-based mine, which is slated to become the largest source of battery metal lithium in the Western Hemisphere. ...

GM, which invested $625 million in the mine last year for a 38% stake, has the right to buy all of the project's lithium from its first phase and a portion from the second phase for 20 years.

Read more here.

Yahoo Finance's Ben Werschkul takes a look at the potential economic impact of the funding stoppage that started early Wednesday:

Federal agencies will now implement their contingency plans and send hundreds of thousands of government workers home to wait out a stalemate.

Economic effects might be noticeable quickly as government spending largely ceases and economic data gets delayed, starting this Friday with what was scheduled to be a jobs report from the Bureau of Labor Statistics. These impacts could be mitigated if the stoppage ends promptly.

Trump on Tuesday also promised to heighten the potential effects of a shutdown — in part to pressure Democrats — saying \\"we can do things during the shutdown that are irreversible.\\"

He added later in the day \\"a lot of good can come down from shutdowns. We can get rid of a lot of things that we didn't want.\\"

The shutdown is also not the only Washington policy focus for investors Wednesday. Markets will also be digesting new tariffs, as promised duties of 100% on a slice of pharmaceutical products and 25% duties on heavy-duty trucks are scheduled to go into effect.

This week also marked the last formal day on the job for government employees who accepted a Department of Government Efficiency program earlier this year called \\"fork in the road\\" that induced tens of thousands to leave government service.

Read more here.

Nike's (NKE) fiscal first quarter earnings and sales topped Wall Street estimates late on Tuesday.

The stock rose about 3% in premarket trading as investors welcomed the performance from the sneaker giant, which is navigating a major turnaround strategy under CEO Elliott Hill and President Trump's tariffs.

Yahoo Finance's Brooke DiPalma reports:

The company reported adjusted earnings per share that came in at $0.49 compared to Wall Street analyst estimates for $0.28, according to data from Bloomberg. Revenue increased 1% year over year to $11.7. billion, higher than $11.02 billion that was expected. Revenue fell 1% over the prior year when adjusted for currency impacts. ...

\\"This quarter, our win-now actions drove momentum in the areas we prioritized first: Running, North America, and Wholesale Partners,\\" Hill told investors. \\"Consumers are responding. We're getting some wins under our belt.\\" ...

CFO Matthew Friend said the company expects an approximately $1.5 billion impact from President Trump's tariffs, up from $1 billion shared last quarter. Since the last quarter, tariffs on countries like Vietnam, Cambodia, and Indonesia have increased to 46%, 19%, and 19%, respectively. ...

\\"While the new tariffs are creating near-term pressure on our margins, we have outlined the actions that we're taking there to address it over time,\\" Friend said on the call. \\"It's going to take us a little bit of time,\\" he stressed.

Read more here.

Bloomberg reports:

Gold (GC=F) hit another record, extending a four-day rally, as traders braced for a possible US government shutdown that could support demand for haven assets.

Bullion rose to touch $3,875.53 an ounce, above the peak set on Tuesday, as investors tracked the deadlock in Washington. If Democrats and Republicans do not reach an agreement by a midnight deadline to fund federal operations, that would trigger the first shutdown in nearly seven years — a scenario that could delay key figures, including Friday’s nonfarm payrolls.

Bullion has soared more than 47% so far this year, putting it on track for the biggest annual gain since 1979. The rally has been supported by central-bank buying, and rising holdings in gold-backed exchange-traded funds as the Federal Reserve resumed interest-rate cuts. Monthly ETF inflows in September were the largest in three years, according to data compiled by Bloomberg.

Read more here.