Dow Jones Industrial Average slows to a crawl as investors watch shutdown headlines

• The Dow Jones remains stuck in a near-term range near 46,500.
• Equity markets have hit a slow patch as the US government shutdown grinds on.
• Key US economic data may be suspended or delayed amid federal closures.

The Dow Jones Industrial Average (DJIA) flattened on Thursday, sticking close to the 46,500 region as equity markets hunker down to wait out the US federal government's shutdown. This week's key US labor and wages data dump is unlikely to be released after the Bureau of Labor Statistics (BLS) warned that a government shutdown would result in the latest Nonfarm Payrolls (NFP) jobs report being delayed or suspended until government operations resume.

Government shutdown limits data releases

Investors are banking on the latest government shutdown having a limited impact on economic factors. Traders largely expect this closure to be short-lived, and overall market focus remains pinned firmly on Federal Reserve (Fed) interest rate cuts through the remainder of the calendar year.

According to the CME's FedWatch Tool, rate markets have fully priced in a follow-up interest rate cut on October 29, with over 90% odds of getting a third straight rate trim on December 10. Rate traders are also expecting the Fed to deliver a fourth quarter-point rate cut in either March or April of next year.

According to various sources, the latest NFP jobs report is ready to be released, but BLS operational guidelines mean labor data will be withheld during a government shutdown. The latest weekly Initial Jobless Claims data was not reported this week, despite being collected and compiled prior to the government shutdown. Unless the Trump administration specifically moves to publish the latest jobs figures, this week's NFP print will remain in limbo pending the return of the US government.

Dow Jones daily chart