U.S. stock futures remained stable even as investors continued to worry about the possibility of a federal government shutdown. Wall Street extended its rally with four consecutive sessions of gains, suggesting the market is largely brushing off fears of a government closure.
As of 7:16 p.m. ET (11:16 p.m. GMT), S&P 500 futures stood at 6,759.50 points, Nasdaq 100 futures were flat at 25,018.75 points, and Dow Jones 30 futures edged slightly to 46,712.0 points.
The shutdown began as Congress failed to pass a new budget, leading to disruptions in federal services ranging from air traffic control to disaster relief. Key economic reports — including Friday’s nonfarm payrolls data — are also at risk of being delayed.
Despite this, Wall Street closed higher: the S&P 500 reached a record 6,711.20, the Nasdaq Composite rose 0.4%, and the Dow Jones gained 0.1%. Gains were fueled by healthcare and technology stocks, as investors bet on policy support and the long-term potential of artificial intelligence.
Recent U.S. economic data has shown weakness, putting pressure on expectations for Federal Reserve interest rate cuts. ADP employment data for September came in below forecasts, while the manufacturing PMI continued to contract.
Historically, government shutdowns have had a limited but notable impact on financial markets. The 35-day closure at the end of 2018 into early 2019 cost the U.S. economy around $11 billion.
Given the current backdrop, investors are likely to remain cautious, focusing on fundamentally strong equities and sectors benefiting from technological trends, while closely monitoring developments in federal spending policies and U.S. economic data.
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