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.
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Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
Speaking during a closed-door deposition in New York on Thursday (February), former U.S. Secretary of State Hillary Clinton said she did not “recall” ever meeting the late sex offender Jeffrey Epstein and had “no knowledge of his crimes”.
Pakistan’s declaration of an “open war” with Afghanistan must be understood in the context of months of escalating violence, regional analysts have said, describing the latest developments as a significant shift in the nature of the conflict.
Iran’s Foreign Minister Abbas Araghchi on Friday urged Afghanistan and Pakistan to resolve their differences through dialogue, offering Tehran’s assistance to facilitate understanding between its eastern neighbours.
Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
The United States has begun "major combat operations" in Iran, President Donald Trump has confirmed, as Israel said it had launched a "pre-emptive" missile strike against Iranian targets. Iran has retaliated with strikes over Israel.
Russian President Vladimir Putin’s special envoy, Kirill Dmitriev, arrived in Geneva and may hold talks with U.S. officials, according to the RIA news agency.
Ankara has rejected media reports claiming it plans to deploy military forces into Iranian territory in the event of a U.S. attack on the Islamic republic.
Two people were killed and around 40 injured when a tram derailed in central Milan on Friday (27 February), a spokesperson for the local fire service said.
A senior Iranian official has warned Israel to “prepare for what is coming”, insisting that Tehran’s response to the latest escalation in the Middle East will be made openly and without limits.
Cuba has released extensive details of a deadly midweek shootout at sea, showing rifles, pistols and nearly 13,000 rounds of ammunition that it says were carried by a group of exiles who attempted to enter the island by speedboat.
Afghanistan’s Taliban rulers said on Friday (27 February) they were ready to negotiate after Pakistan bombed their forces in several Afghan cities, including Kabul and Kandahar, and Islamabad declared the neighbours were now in "open war".
Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
Two people were killed and around 40 injured when a tram derailed in central Milan on Friday (27 February), a spokesperson for the local fire service said.
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