Markets Rally Despite Shutdown Blocking Key Economic Data

Wall Street ended the week higher despite the ongoing government shutdown that has halted the release of key federal economic data. The Dow gained 415 points Friday morning, but investors face mounting uncertainty as the Labor Department’s monthly jobs report and other gold-standard indicators remain unavailable.

Economists warn that the absence of official data could leave markets and the Federal Reserve “flying blind” on inflation and labor trends.

Private data from firms such as ADP offers partial insight but is considered a poor substitute for government reports. ADP numbers this week showed the private sector shed 32,000 jobs in September.

Wall Street has kept racing to new highs despite the shutdown, but Toby Gibb of Artemis Investment Management told Reuters US markets are actually underperforming European and Asian indexes, as politics makes investors more cautious https://t.co/XbeLdYihrk pic.twitter.com/oXbKx6a2jZ

— Reuters Business (@ReutersBiz) October 3, 2025

Analysts note that shutdowns have historically had little long-term market impact, yet prolonged disruptions could strain confidence.

The Fed, already weighing potential rate cuts, may face greater difficulty making decisions if the blackout continues.

The US government has been closed for a couple of days now. Markets seem remarkably sanguine about this fact. Are they right to be? https://t.co/pfEtsSjzYP

— Bloomberg (@business) October 3, 2025

Corporate earnings and enthusiasm around artificial intelligence continue to support stock momentum.

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