Stock futures dropped on Wednesday after the U.S. government shut down at midnight, raising fears of a longer-than-normal stoppage that weighs on an already fragile economy. Futures tied to the Dow Jones Industrial Average fell 213 points, or 0.5%, with the major average set to retreat from a record close posted on the previous trading day. S&P futures and Nasdaq 100 futures declined 0.5% and 0.6%, respectively. Markets are coming off a banner month that saw the S&P 500 rise more than 3.5%. The U.S. government shut down after attempts made by the Republican-controlled Senate failed to secure a temporary spending bill on Tuesday. Democrats are hoping to use the measure to codify an extension of health care tax credits for millions of Americans. The stock market has typically glided through previous government shutdowns — but this one could be riskier given the slew of economic factors at play. Investors remain concerned about a slowing labor market and inflation risks as well as historically elevated stock valuations and market concentration levels. The nonpartisan Congressional Budget Office estimated Tuesday that the shutdown will result in the furlough of about 750,000 federal employees. Trump has threatened permanent mass firings of federal workers under a shutdown, adding a new economic risk to this stoppage. This time around, the market is likely to focus on the length of the shutdown since a prolonged closure could delay key economic data ahead of the Federal Reserve’s meeting in late October. The Labor Department said Friday it will shut down virtually all activity, meaning the September nonfarm payrolls report would not be released at the end of the week. In the case of no jobs data, a reading on private sector job creation from payroll processing group ADP on Wednesday morning is expected to take on greater significance. The shutdown means the Fed will be partially flying blind with investors expecting the central bank’s second rate cut of the year later this month and another decrease in December. Bank stocks fell broadly in the premarket follow the stoppage on concern about a slowing economy. JPMorgan Chase and Wells Fargo shed 0.5% each. Citigroup lost nearly 0.9%. Goldman Sachs and Morgan Stanley were also lower. Tech shares that have led the bull market, including Palantir and Oracle, declined as part of a risk-off move. “The market seemed to be looking for a reason to sell off after bucking the seasonal weakness we tend to experience in September,” said Jay Woods, chief market strategist for Freedom Capital Markets. “While the shutdown was expected, the lack of progress and urgency to a resolution has investors concerned. The backdrop to this shutdown is much different than the 2018 shutdown, which was the longest on record.” Gold hit a new record as investors looked for a global safe haven. Bitcoin also gained. Treasuries and the U.S. dollar were relatively stable. U.S. Treasury yields were little changed on Wednesday as investors monitored the consequences of the government shutdown after lawmakers failed to reach an agreement on the federal funding bill. The 10-year Treasury yield was basically flat at 4.14%, and the 2-year Treasury yield lost 1 basis point to 3.594%. The 30-year bond yield rose just over one basis point to 4.7447%. Asia-Pacific markets were mixed Wednesday, following gains on Wall Street as investors appeared unperturbed by the U.S. government shutdown. Japan’s Nikkei 225 sunk 0.85% to close at 44,550.85, marking its fourth straight day of losses, while the broad-based Topix was down 1.37% and ended at 3,094.74. In South Korea, the blue-chip Kospi was up 0.91% to finish at 3,455.83, and the small-cap Kosdaq gained 0.4% to 845.34. The Taiwan Weighted Index pared earlier gains to rise 0.63% to 25,982.91. Australia’s S&P/ASX 200 slipped marginally to close at 8,845.7. Markets on mainland China and Hong Kong were closed for a holiday. Gold prices soared to new highs on Wednesday, as the U.S. government entered its first shutdown in almost seven years after lawmakers failed to reach a deal on government funding. Amid the uncertainty, risk assets lost ground, while gold — typically viewed as a safe haven asset in times of economic or geopolitical turbulence — continued its bumper rally to hit its 39th record high this year. Spot gold was trading at $3,893.06 an ounce by 5:02 a.m. ET, while U.S. gold futures for December delivery extended gains to reach $3,918.10. Oil prices steadied on Wednesday after falling for two days as investors weighed OPEC+ plans for a larger output hike next month while data from the U.S. and Asia showed signs of demand waning. Brent crude futures for December delivery rose 6 cents to $66.09 a barrel by 0835 GMT. U.S. West Texas Intermediate crude gained 4 cents to $62.41 a barrel. On Monday, Brent and WTI both settled more than 3% lower, their sharpest daily declines since August 1. On Tuesday, they each fell 1.5% further.