U.S. stock index futures fell on Wednesday as investors assessed the implications of the federal government shutdown, which threatens to disrupt the release of key economic data and complicate the Federal Reserve's policy path.
The shutdown, which independent analysts warn could last longer than the budget-related closures of the past, comes at a time when markets are leaning heavily on hopes of a dovish Fed policy, and after equities posted the second straight quarter of gains.
While shutdowns have not derailed markets historically, the current episode coincides with a critical period when stock valuations are elevated and sentiment fragile.
The S&P 500 rose during each of the last six government shutdowns, according to a note from Deutsche Bank.
However, a longer shutdown could be a cause for concern.
In the seven instances where they lasted 10 days or more, the index fell four times and rose three times, according to data from Vanguard.
"While a government shutdown is disruptive in its own ways, now isn't exactly the time that investors, or the Fed, want to lose access to key economic data points," said Bret Kenwell, U.S. investment analyst at eToro.
At 04:21 a.m. ET, Dow e-minis YMcv1 were down 310 points, or 0.66%, U.S. S&P 500 E-minis EScv1 were down 52.5 points, or 0.78%, and Nasdaq 100 E-minis NQcv1 were down 234.5 points, or 0.94%.
With uncertainty around when the next nonfarm payrolls report will be released, upcoming data such as the ADP National Employment Report and the Institute for Supply Management's manufacturing PMI for September, due on Wednesday, will likely be scrutinised more closely for clues on the labour market and inflation.
Investors will also parse commentary from Federal Reserve Bank of Richmond President Thomas Barkin for any shift in tone as policymakers navigate a murkier data landscape.
Among the early movers was Nike, which rose 3% in premarket trading a day after reporting surprise revenue growth in the first quarter.
NYSE-listed shares of Lithium Americas surged 39% after it said the U.S. Department of Energy had taken a 5% stake in the company.
The pro-independence coalition Kanak and Socialist National Liberation (FLNKS) has formally withdrawn its signatures from the so-called “Accord de B...
The U.S. government has shut down after Congress failed to approve funding. Non-essential services are paused, thousands of federal workers are left u...
NATO navies are ramping up defenses in the Baltic and North Seas as Russia’s so-called “shadow fleet” of deceptive vessels grows rapidly, raisin...
The Pentagon recommitted itself in a statement on Tuesday to scaling back its military mission in Iraq, a process that a U.S. official said will see B...
U.S. stock index futures fell on Wednesday as investors assessed the implications of the federal government shutdown, which threatens to disrupt the r...
The U.S. government has shut down after Congress failed to approve funding. Non-essential services are paused, thousands of federal workers are left unpaid, and both parties blame each other for the deadlock.
The pro-independence coalition Kanak and Socialist National Liberation (FLNKS) has formally withdrawn its signatures from the so-called “Accord de Bougival”, accusing the French state of misrepresentation and “brute force” tactics in New Caledonia’s decolonisation process.
NATO navies are ramping up defenses in the Baltic and North Seas as Russia’s so-called “shadow fleet” of deceptive vessels grows rapidly, raising fears of espionage and sabotage against critical infrastructure.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
A powerful 7.4-magnitude earthquake struck off Russia’s Kamchatka Peninsula on 13 September with no tsunami threat, coming just weeks after the region endured a devastating 8.8-magnitude quake — the strongest since 1952.
Authorities in California have identified the dismembered body discovered in a Tesla registered to singer D4vd as 15-year-old Celeste Rivas Hernandez, who had been missing from Lake Elsinore since April 2024.
The pro-independence coalition Kanak and Socialist National Liberation (FLNKS) has formally withdrawn its signatures from the so-called “Accord de Bougival”, accusing the French state of misrepresentation and “brute force” tactics in New Caledonia’s decolonisation process.
The U.S. government has shut down after Congress failed to approve funding. Non-essential services are paused, thousands of federal workers are left unpaid, and both parties blame each other for the deadlock.
NATO navies are ramping up defenses in the Baltic and North Seas as Russia’s so-called “shadow fleet” of deceptive vessels grows rapidly, raising fears of espionage and sabotage against critical infrastructure.
The Pentagon recommitted itself in a statement on Tuesday to scaling back its military mission in Iraq, a process that a U.S. official said will see Baghdad command efforts to combat remnants of Islamic State inside its own country.
South Korean airport workers will go on strike starting on Wednesday, the state-run Korea Airports Corporation said.
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