Nasdaq 100: Tech Stocks Mixed as Shutdown Fears Hit US Stock Market Forecast

Wall Street Slips as Shutdown Risk Threatens Data Flow

U.S. equities pulled back on Tuesday, with major indexes trimming quarterly gains as traders braced for a potential government shutdown that could delay critical economic data.

Shortly before the close, the S&P 500 fell 0.13%, the Nasdaq Composite lost 0.26%, and the Dow Jones Industrial Average dropped 0.18%. At 17:38 GMT, investors are cautious over how the disruption may affect the Federal Reserve’s ability to assess the economy.

Could a Government Shutdown Disrupt Fed Policy Clarity?

With valuations stretched, markets are relying on a dovish Fed stance to sustain the rally. A shutdown threatens to obscure the economic picture, raising the risk of policy missteps. Analysts warned this episode could prove more disruptive than past ones.

“Should any shutdown be protracted, that could lead to other government economic statistics being delayed,” said David Morrison of Trade Nation.

Traders had to rely on mixed data already in hand: August job openings ticked up, but consumer confidence in September fell more sharply than expected.

How Did Sectors Perform?

Sector moves were divided. Consumer discretionary lost 1.2%, dragged down by Tesla (-1.8%) and Amazon (-1.5%), which also weighed on the Nasdaq.

Communication services slipped 0.9%, pressured by Meta (-1.1%) and Alphabet (-1.2%).

In contrast, technology gained 0.6%, and healthcare added 0.8%, helping offset broader weakness.

Financials weighed heavily on the Dow as American Express (-2.9%), Goldman Sachs (-1.7%), and JPMorgan (-1.1%) all fell.

What Signals Are Coming from the Federal Reserve?

Fed commentary remained in focus. Vice Chair Philip Jefferson cautioned the job market could come under stress without continued support, while Boston Fed President Susan Collins indicated openness to further rate cuts. Traders looked ahead to a busy slate of Fed speakers later in the day for policy cues, especially as incoming data may be disrupted.

Which Stocks Made Big Moves?

Individual names delivered sharp swings. Wolfspeed surged 54.1% after exiting bankruptcy, while Firefly Aerospace dropped 23.5% following a rocket test failure. Lamb Weston jumped 4.9%, topping the S&P 500 after beating revenue and profit forecasts.

Market breadth tilted negative, with declining stocks outnumbering advancers by 1.47-to-1 on the NYSE and 1.77-to-1 on the Nasdaq.

Market Forecast

Despite Tuesday’s dip, the S&P 500 is still on track for its strongest third-quarter performance since 2020, with all three major indexes positioned for a second straight quarterly advance.

However, the risk of a shutdown delaying critical economic releases leaves the Fed without clear guidance, injecting uncertainty into the outlook.

Traders should expect elevated volatility if data disruptions persist and remain focused on Fed commentary for trading signals.

More Information in our Economic Calendar.