Federal shutdown delays jobs report as markets eye recovery
The U.S. federal government shutdown has halted the release of the monthly jobs report scheduled for Friday. Economists warn of broader data disruptions, but market strategist Tom Lee remains optimistic about a stock market rebound. He predicts the S&P 500 will surpass 7,000 by year-end despite the temporary chaos.
The U.S. government entered a partial shutdown on October 1, 2025, after Congress failed to pass funding legislation, leading to furloughs for non-essential federal workers. This disruption immediately impacted the Bureau of Labor Statistics, which announced that the September jobs report, typically released on the first Friday of the month, would not be published on October 3 as planned. 'The shutdown means no jobs report on Friday,' stated a Bureau spokesperson, highlighting the agency's inability to process and release the data during the impasse.
Beyond the jobs figures, the shutdown threatens delays in other critical economic indicators. The Commerce Department may postpone third-quarter GDP estimates, originally due later in October, while the Consumer Price Index (CPI) for September could face similar setbacks. MarketWatch reported that these interruptions could complicate Federal Reserve decision-making, as policymakers rely on timely data to assess inflation and employment trends. 'This may not be the worst data delay,' the article noted, pointing to potential cascading effects on retail sales, industrial production, and housing starts reports.
Despite the uncertainty, Wall Street voices urged calm. Tom Lee, managing partner at Fundstrat Global Advisors, downplayed the shutdown's long-term market impact in a CNBC interview on October 2. 'Don't be fooled by shutdown calamity talk,' Lee said, arguing that historical shutdowns have been short-lived and markets have quickly recovered. He forecasted the S&P 500 reaching 7,000 by the end of 2025, driven by strong corporate earnings and cooling inflation, even as the Dow Jones Industrial Average dipped 0.5% on the shutdown's first day.
Lee's optimism contrasts with concerns from some economists, who note that prolonged disruptions could erode consumer confidence. The 2018-2019 shutdown, lasting 35 days, delayed economic data and contributed to market volatility. However, with bipartisan talks underway in Congress, many anticipate a resolution within days, minimizing broader fallout. As of October 2, the S&P 500 stood at around 5,800, reflecting cautious trading amid the news.