US stock market today: Dow, S&P 500, Nasdaq slip as US shutdown collides with ADP’s shock 32,000 job losses; fueling Fed cut expectations

U.S. stock market had a shaky start to October. Investors are cautious as the federal government enters a shutdown and economic data shows signs of weakness. The day saw a mix of declines and small gains across major indices.

The shutdown began at midnight after Congress failed to agree on a short-term funding bill. The Congressional Budget Office (CBO) estimates about 750,000 federal employees will be furloughed.

President Donald Trump has warned that “a lot” of permanent job cuts could follow, raising fears of deeper economic fallout.
The shutdown halts critical work across federal agencies, including the Bureau of Labor Statistics (BLS), which is now suspending nearly all operations. That means Friday’s nonfarm payrolls report, a key input for the Federal Reserve, will likely be delayed.

Economists warn that the longer the shutdown drags on, the more it could weigh on consumer spending, business confidence, and GDP growth.

The Dow Jones Industrial Average dropped sharply, reflecting pressure on traditional sectors like banking and retail. Meanwhile, the S&P 500 also slipped, dragged down by consumer-facing companies facing uncertainty about spending trends. In contrast, the Nasdaq Composite managed a modest gain, supported by strong performances in technology stocks. Companies such as Apple, Nvidia, and Microsoft helped offset losses elsewhere, showing that tech remains a key driver even in turbulent times. Analysts say that investor sentiment is heavily influenced by political uncertainty. The government shutdown raises concerns about delayed federal spending, halted public services, and broader economic impacts, which can ripple across industries.

New data from ADP showed that private employers cut 32,000 jobs in September, much worse than the expected gain of around 45,000 jobs. The largest losses came from hospitality and leisure (-19,000), while education and health services (+33,000) provided some support.

This is the biggest monthly decline in private payrolls since March 2023. August’s numbers were also revised down from a gain of 54,000 to a loss of 3,000 jobs.

Losses were led by hospitality and leisure (-19,000 jobs), while education and health services (+33,000 jobs) provided a rare bright spot. August’s figure was also revised downward from a gain of 54,000 to a small loss of 3,000.

The weak data reinforces concerns about a slowing labor market just as the Fed prepares for its October policy meeting. With the official jobs report sidelined, private data like ADP’s is taking on outsized importance.

Among the Magnificent Seven tech stocks, performance was mixed. Meta Platforms (META) tumbled nearly 3% to $714.75, extending losses of more than 9% since its record August high.

The slide came after news of Meta’s $14 billion AI infrastructure deal with CoreWeave, and reports that it will start recommending ads based on AI chat conversations in December. Meta also announced it will acquire chip startup Rivos, signaling a push toward in-house chip development.

Other big names traded cautiously: Google (GOOG) and Microsoft (MSFT) slipped about 1%, while Apple (AAPL) and Nvidia (NVDA) inched higher. Tesla (TSLA) gained 3%.

Safe-haven assets like gold and U.S. Treasury bonds attracted more attention as traders sought protection from volatility. Gold prices climbed, and bond yields fell, signaling that investors are hedging against potential market instability.

ETFs tracking major indices reflected the mixed sentiment. While some funds like SPY and QQQ showed minor declines, others remained relatively stable, suggesting that investors are balancing risk with opportunities in resilient sectors.

Overall, October 1 highlighted the delicate balance between uncertainty and opportunity in today’s market. Traders are watching political developments, economic reports, and corporate earnings closely, as these factors will likely guide market trends in the coming weeks.

Major indices today

The markets showed mixed results, but the mood was mostly down.

• Dow Jones Industrial Average closed at 46,247.29, down 299.97 points or 0.65%.
• S&P 500 Index ended at 6,664.94, a drop of 27.25 points or 0.35%.
• Nasdaq Composite finished at 22,555.30, surprisingly up 68.86 points or 0.46%.

Why did the Nasdaq rise while others fell? Technology stocks such as Nvidia and Apple helped push the Nasdaq slightly higher. Meanwhile, traditional sectors like financials and consumer staples saw losses.

Investors are reacting carefully. Even small declines can be meaningful when uncertainty is high. Many are choosing to wait and watch before making big moves.

Why did the government shutdown shake markets?

At 12:01 a.m. EDT on October 1, 2025, the U.S. federal government entered a partial shutdown. Congress was unable to pass a funding bill, leaving federal operations in limbo.

What does this mean for workers and citizens? Around 900,000 federal employees were furloughed, while another 700,000 had to work without pay. Essential services like Medicare and TSA screenings continued. But many agencies, including public health and research centers, scaled back or paused work.

Markets don’t like uncertainty. When the government can’t operate fully, investors worry about economic growth and financial stability. Stocks often dip in such situations because traders want to reduce risk.

AES stock soars on BlackRock takeover deal

Outside of tech, utility giant AES Corporation (AES) jumped 15% after the Financial Times reported that BlackRock’s Global Infrastructure Partners is close to completing a $38 billion acquisition of the company.

The deal would be one of the largest infrastructure takeovers in U.S. history and underscores rising energy demand from data centers.

Reddit plunges as AI usage fades

Reddit (RDDT) shares sank almost 10% after new data showed its content is being cited far less often in ChatGPT responses. In September, Reddit made up more than 14% of chatbot responses, but that figure plunged to just 2% this week.

Treasury yields and the dollar react

U.S. Treasury yields fell after the weak ADP jobs report. The 10-year yield slipped to 4.106%, while the 2-year yield dropped to 3.547%. Investors see the data as strengthening the case for another Fed rate cut in October, with markets pricing in an additional cut by December.

Meanwhile, the U.S. dollar index (DXY) edged down to 97.54, putting the greenback on track for its biggest annual decline since 2003, down more than 10% so far in 2025.

Top Stocks in the U.S. Market Today

1. Top Gainers

Nike (NKE)

• Nike shares rose sharply, driven by strong sales reports and positive consumer sentiment.
• Investors responded well to the company’s growth in international markets and innovative product launches.
• The stock gained more than 4%, making it one of the day’s top performers.

Merck & Co (MRK)

• Merck benefited from promising clinical trial results and consistent revenue performance.
• Healthcare investors saw it as a safe pick amid market volatility.
• The stock increased by nearly 3%, reflecting confidence in the company’s stability.

Amgen (AMGN)

• Amgen climbed due to strong earnings guidance and new product developments in biotechnology.
• Its focus on innovative therapies continues to attract long-term investors.
• Shares rose approximately 2.8%, highlighting resilience in the healthcare sector.

Microsoft (MSFT)

• Microsoft saw gains from strong cloud computing and AI-related business growth.
• Investor optimism about technology adoption and enterprise services helped the stock rise.
• Shares were up around 2.5%, supporting Nasdaq’s overall positive performance.

Nvidia (NVDA)

• Nvidia benefited from ongoing demand for AI chips and gaming technology.
• Despite broader market concerns, its growth story kept investors confident.
• The stock added 0.8%, contributing to Nasdaq’s modest gains.

Top Losers

Walmart (WMT)

• Walmart dropped due to concerns about slower consumer spending and rising operational costs.
• Investors worried that tightening consumer budgets could affect retail profits.
• The stock fell nearly 2%, making it one of the largest decliners of the day.

JPMorgan Chase (JPM)

• JPMorgan faced selling pressure amid uncertainty from the government shutdown.
• Financial stocks are sensitive to macroeconomic risks and regulatory concerns.
• Shares declined by 1.5%, reflecting caution in the banking sector.

Procter & Gamble (PG)

• The consumer staples giant lost value as investors anticipated weaker consumer demand.
• Rising costs for raw materials also weighed on profit margins.
• The stock dropped around 1.3%, showing vulnerability even in defensive sectors.

ExxonMobil (XOM)

• ExxonMobil faced pressure from fluctuating oil prices and global energy demand concerns.
• Energy sector volatility contributed to a decline of about 1% in its shares.

Chevron (CVX)

• Chevron also saw losses due to market uncertainty and lower-than-expected production forecasts.
• Shares fell approximately 0.9%, reflecting challenges in the energy market.

How did economic data influence trading today?

The ADP private payrolls report showed a slowdown in job growth. This surprised many investors who were expecting stronger hiring numbers.

Why is this important? Employment is a key indicator of economic health. When job growth slows, consumers may spend less, which can reduce corporate profits. Lower profits can weigh on stock prices.

Investors reacted by selling some stocks, particularly in sectors sensitive to consumer spending. This contributed to the decline in the Dow and S&P 500, even as tech stocks held up.

Are safe-haven assets becoming popular?

Yes. As stock markets experience uncertainty, investors often move money into safer assets.

Today, gold prices reached a record high, and U.S. Treasury yields fell. Gold is considered a safe investment when confidence in the economy drops. Falling yields on government bonds indicate that investors are seeking safety.

This trend shows that while some investors take risks in stocks, others prefer protection against volatility. If uncertainty continues, safe-haven assets could keep attracting money in the coming weeks.

What happened with ETFs today?

Exchange-traded funds (ETFs) offer a way to track broad markets. Today, they also reflected cautious trading.

• SPDR S&P 500 ETF (SPY) dropped slightly to $665.40, down 0.12%.
• SPDR Dow Jones ETF (DIA) held mostly steady at $463.81, up 0.02%.
• Invesco QQQ ETF (QQQ) fell slightly to $599.95, down 0.07%.

Even small changes in ETFs can signal market sentiment. Investors often watch these funds to gauge overall trends rather than individual stocks.

Which sectors and stocks led the gains or losses?

Not all sectors reacted the same way.

Winners: Technology and healthcare led some gains. Companies like Nike, Merck, and Amgen saw their shares rise, benefiting from positive earnings and investor interest.

Losers: Retail, banking, and some consumer staples struggled. Stocks like Walmart and JPMorgan Chase fell, weighed down by caution around consumer spending and economic uncertainty.

Sector performance shows that not all parts of the market move together. Even during broad declines, there are opportunities for growth in specific areas.