Wall Street stocks fall as October opens amid US shutdown risks

By Al Mayadeen English
Source: Agencies
1 Oct 2025 17:55

Wall Street stocks fell at the start of October trading, with S&P 500, Nasdaq, and Dow futures slipping as investors weighed the impact of a potential US government shutdown

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A screen shows stock prices on the floor of the New York Stock Exchange, Friday, August 1, 2025, in New York. (AP Photo/Yuki Iwamura)

Wall Street’s stock futures edged lower on Wednesday, October 1, as the fourth quarter began, with investors weighing the impact of a possible US government shutdown.

At 7:30 US Eastern Time (11:30 GMT), futures of the S&P 500 fell 0.5%, suggesting that the index of the top 500 United States companies could open weaker.

Futures of the tech-heavy Nasdaq Composite also dropped 0.5%, while the Dow Jones Industrial Average slipped 0.4%.

September defied its reputation as a difficult month for equities, as the S&P 500 gained 3.5% and the Nasdaq surged 5.6%. The Dow also rose 1.9% last month. For the third quarter, the S&P 500 climbed 9%, the Nasdaq jumped 12%, and the Dow added 8%.

In contrast, September 2022 saw the S&P 500 plunge 9.3%, underscoring the strength of last month’s rally.

Federal Reserve rate cut boosted markets in September

The September upswing came after the US Federal Reserve announced its long-anticipated 25-basis point rate cut on September 17, its first for 2025.

Many on Wall Street interpreted the move as the start of an extended period of monetary easing, fueling optimism and record highs in the S&P, Nasdaq, and Dow.

The central bank has not confirmed that further cuts will follow, but investor sentiment was buoyed nonetheless.

Despite the strong third-quarter performance, investors now fear that the first US government shutdown since 2019 could slow the momentum.

A shutdown could impact federal jobs, public services, and business operations, adding uncertainty to Wall Street’s outlook as October begins.