07:27 AM EDT, 10/01/2025 (MT Newswires) -- US lawmakers failed to make a deal to extend the government's 2025 fiscal year funding on Tuesday, shutting key services and halting data releases monitored by Wall Street.

Sen. Chuck Schumer, leader of the opposition Democrats in the US chamber, said in a post on X that the shutdown began at midnight because Republicans, who have a majority in the Senate, "wouldn't protect Americans' health care." Several Democrats would have been needed to support the stopgap funding measure in the Senate, according to the chamber's rules.

Speaker Mike Johnson, a Republican, blamed Democrats in his post, saying veterans will now "lose health care and suicide prevention programs" and added that the Federal Emergency Management Agency will have "shortfalls during hurricane season."

While Americans will lose out on key services, and many workers will be sent home, analysts are left waiting for economic data releases that are issued by the federal government and give clues to the state of the world's biggest economy.

"A shutdown -- particularly if prolonged -- can weigh on the economy and consumers, impacting economic data releases (including Friday's nonfarm payroll report) and eroding not just confidence but realized activity levels, potentially reducing GDP," Lindsey Piegza, chief economist with Stifel, said in a note Tuesday before the shutdown deadline.

The last shutdown in 2018 lasted 35 days, she said, and reduced spending by $3 billion in the fourth quarter of that year and another $8 billion in the first three months of 2019. "Of course, shutdowns have become somewhat of a regular process over the last decade, arguably mitigating the negative fallout," Piegza said.

Markets were sliding before the opening bell, with futures in the red after posting gains to end the month of September. Any selloff driven by the shutdown could be an opportunity for investors, according to Wells Fargo Investment Institute.

"We prefer to look through this additional noise from Washington and instead view any equity-market pullback as an opportunity to incrementally add exposure to our favored cyclical and growth sectors," said Jennifer Timmerman, investment strategy analyst with WFII, in a note Monday. She cited financials, information technology and industrials as their sector picks.