The U.S. Congress missed the midnight deadline for funding, leading to the first government shutdown in nearly seven years, and the third during President Trump’s administration.

The White House Office of Management and Budget has ordered all government agencies to begin implementing plans to cope with funding shortfalls, with the government halting operations except for essential duties, leading to the suspension of hundreds of thousands of American jobs and disruptions to many public services.

As the two parties are at an impasse on the issue of healthcare subsidies and are using this opportunity to prepare for the 2026 midterm elections, the government shutdown and its impact on the economy may last even longer. Institutional research shows that if the government shutdown lasts for three weeks, the unemployment rate could rise from 4.3% in August to 4.6%-4.7%.
Around 2 PM, the Nasdaq index futures experienced a flash crash, falling by 1%.