Stocks edge lower after another discouraging signal on the job market

Wall Street was veering toward losses before the opening bell Wednesday as a U.S. government shutdown went into effect just after midnight.

Futures for the S&P 500 and the Dow Jones Industrial Average were down 0.5% ahead of the open, while Nasdaq futures slid 0.6%. Markets just closed out a fifth straight winning month on Tuesday with the Dow hitting an all-time high.

Lithium Americas jumped more than 32% overnight after the U.S. government confirmed speculation that it would take a 5% equity stake in the company.

The deal, which was widely reported last week, includes an approximate $2.3 billion federal loan that would allow the company to move forward on extracting the silver-white metal used in electric vehicle batteries from its massive mine in northern Nevada.

Utility and power generator AES climbed 10% on media reports that the Virginia company was near a deal to be acquired by BlackRock subsidiary Global Infrastructure Partners.

Markets had appeared to be taking a potential government shutdown in stride, rolling to record after record in recent weeks. Past U.S. government shutdowns have had a limited impact on the economy and stock market, and many investors expect something similar this time around.

The broader stock market has been on a nearly relentless run since hitting a low in April on expectations that President Donald Trump’s tariffs won’t derail global trade and that the Federal Reserve will cut interest rates several times to boost the slowing job market.

The Fed just delivered its first cut of the year, and officials have penciled in more to give the job market a boost.

When Wall Street will get the next data reports on the job market is uncertain, because the shutdown would delay the release of several important reports, including Friday’s September jobs report.

The Department of Labor has said that the Bureau of Labor Statistics will completely cease operations if there’s a lapse. The agency already was strained by Trump’s firing of Erika McEntarfer as BLS commissioner on Aug. 1 after the July jobs report showed a rapid slowdown in hiring, with job gains in May and June revised much lower than initially estimated.

Late Tuesday, the White House said Trump was withdrawing the nomination of E.J. Antoni to lead the bureau, according to an AP source who spoke on the condition of anonymity to discuss a White House action that hadn’t been publicly announced.

Elsewhere, in Europe at midday Germany's DAX gained 0.5%, the CAC 40 in Paris rose 0.4% and Britain's FTSE climbed 0.7%.

In Asia, Japan's Nikkei 225 index shed 0.9% to 44,550.85 after the Bank of Japan reported a slight improvement in business sentiment among major manufacturers.

The indications from the BOJ's quarterly tankan survey raise the odds that the central bank will increase its key interest rate to counter inflation that has topped its target range of about 2% for some time.

Political uncertainty is also looming over Japan's markets, with the ruling Liberal Democratic Party due to chose a new leader and prime minister later this week to replace embattled Prime Minister Shigeru Ishiba.

Markets and offices in mainland China are closed until Oct. 8 for the National Day holiday, China's central bank said it plans a 1.1 trillion yuan ($160 billion) reverse repo operation on Oct. 9, to increase the amount of cash in circulation and stimulate consumer spending and business investment.

Elsewhere in Asia, South Korea's Kospi gained 0.9% to 3,455.83, while Taiwan's Taiex added 0.6% on heavy buying of semiconductor-related shares.

Australia's S&P/ASX 200 slipped less than 0.1%, to 8,845.70.

In India, the Sensex rose 0.8%.