Officials of the Federal Reserve recently lost access to employment data from ADP, the Washington Post reported on Oct. 22. Since the central bank is already unable to receive key economic data in the U.S. due to the ongoing government shutdown, the loss of ADP jobs data would make it even more difficult for it to make policy decisions regarding interest rates. The uncertainty fuelled the crypto markets to slump even further. The total crypto market cap fell to $3.65 trillion at press time, down 4.79% in ...

Core Insights - The S&P 500 and Nasdaq indexes experienced declines as Wall Street assessed the implications of a federal government shutdown on the US economy [1][4] - The S&P 500 rose over 3.5% in September, but private-sector job cuts reported by ADP fell short of expectations, indicating potential economic weakness [2][3] - Historical data suggests that the S&P 500 has generally performed well during past government shutdowns, with notable gains in several instances [5][8][9] Market Performance - The S&P 500 dropped 0.2% and the Nasdaq Composite fell 0.3% at the start of Wednesday's trading session [1] - The Dow Jones Industrial Average remained near flat after an initial decline of 52 points [1] - Gold prices reached all-time highs above $3,900 per ounce as investors sought safe-haven assets amid market uncertainty [5] Employment Data - ADP reported a loss of 32,000 jobs in September, contrasting with economists' expectations of a 45,000 job gain, marking the steepest decline since March 2023 [2][3] - The August job figures were revised from a reported increase of 54,000 to a loss of 3,000, further indicating labor market weakness [2] Government Shutdown Impact - The Labor Department's closure during the shutdown means the September nonfarm payrolls report will not be released, increasing reliance on private surveys for economic indicators [3] - Market sentiment appears to be influenced by the lack of progress in resolving the government shutdown, raising investor concerns [3] Historical Context - Historical performance of the S&P 500 during government shutdowns shows resilience, with gains recorded during various shutdown periods, including a 10.43% increase during the longest shutdown from December 2018 to January 2019 [6][8]