Stock market today: Dow, S&P 500, Nasdaq slide as Wall Street eyes fallout from US shutdown

Corporate Performance - Cisco (CSCO) stock increased over 5% following its earnings report, which indicated progress in capturing AI spending from hyperscalers. The company raised its full-year forecasts for profit and sales, surpassing analysts' expectations [5] - Disney's (DIS) fourth quarter revenue fell short of estimates, resulting in an 8% decline in its shares, despite the company increasing its dividend. The market is now focused on the upcoming results from Applied Materials (AMAT) as the earnings season comes to a close [5] Economic Impact - The end of the 43-day US federal shutdown, signed into law by President Trump, is expected to have significant long-term effects, with the Congressional Budget Office estimating that US GDP could be approximately $11 billion lower by the end of 2026 than previously anticipated [2] - The uncertainty surrounding the economic outlook is complicating market expectations regarding interest rate cuts, with current pricing reflecting a roughly 50-50 chance of a reduction at the Federal Reserve's meeting next month, a significant shift from around 95% odds a month ago [4] Market Reactions - US stocks experienced declines, with the tech-heavy Nasdaq Composite leading losses with a nearly 0.8% drop, while the S&P 500 and Dow Jones Industrial Average fell by 0.5% and 0.2% respectively [1] - Wall Street remains concerned about the economic outlook, particularly after the White House indicated that reports delayed by the shutdown "will be permanently impaired" and likely never released, including key data on inflation and the jobs market [3]