The U.S. government shutdown that began on October 1 has frozen economic data releases and allowed a key cybersecurity law to expire, raising new worries for technology firms and investors.
The shutdown followed a budget standoff in Congress, forcing agencies such as the Department of Labor and the Department of Commerce to suspend operations. That means no jobs report, no inflation updates, and no trade data. Markets and businesses that rely on federal information are now left in the dark.
“This data blackout creates blind spots for investors and businesses,” said Lindsey Piegza, chief economist at Stifel Financial. “Private sources cannot fully replace official reports.”
The shutdown also allowed the Cybersecurity Information Sharing Act to lapse. The law, originally passed to boost coordination between government agencies and private companies, had made it easier to share data on online threats. Experts say its expiration could weaken the country’s cyber defences.
“This is a dangerous moment,” said Michael Daniel, president of the Cyber Threat Alliance. “Cyber adversaries will take advantage of uncertainty and legal gaps.”
Technology companies are already adapting to challenges brought by artificial intelligence and global competition. Analysts warn that the loss of federal data, combined with reduced cybersecurity coordination, could add serious risks. Companies may struggle to plan supply chains, hiring, or investment strategies without reliable government reports.
At Illinois Institute of Technology, students in information technology programs said the shutdown highlights the importance of resilience. “Even one day without coordination makes the U.S. more vulnerable,” said Omar Rahman, a graduate student.
Markets ended Thursday with mixed results. Technology stocks pushed the Nasdaq higher, but analysts warned that reactions could become erratic without federal data to guide investors.
This is the first U.S. shutdown since 2019. Economists say if lawmakers do not reach a deal soon, the financial and security costs are likely to rise.