Core Insights - U.S. government funding has lapsed, leading to furloughs across agencies and likely delaying the September jobs report, which is crucial for rate-cut expectations later this month [4] - The market is experiencing increased volatility, as indicated by the VIX gauge rising towards 17, while stock index futures have retreated from recent highs [3][4] - The shutdown is causing uncertainty in economic data releases, pushing investors to rely on private sector indicators, which may lead to amplified market swings [4] Market Reactions - Wall Street stocks ended higher, nearing record levels, despite the government shutdown, reflecting a generally nonchalant market behavior during previous closures [2] - Gold prices have rallied to new records, while the dollar has softened, indicating a shift in investor sentiment amid the uncertainty [3] - Japanese equities saw a decline of about 1% after an 11% surge in the previous quarter, influenced by hawkish signals from the Bank of Japan [4] Economic Indicators - The lack of timely macroeconomic data due to the government shutdown could lead to increased volatility in rates and foreign exchange markets [4] - The ADP employment report is gaining significance as the nonfarm payrolls report is likely off the calendar, with previous data showing a marginal rise in job openings but a decline in hiring [4] - Core euro zone inflation readings for September were slightly higher than expected, which may influence the European Central Bank's future policy decisions [3]