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.
Iran has warned it will retaliate against any future U.S. attacks, saying American energy interests and infrastructure across the Gulf could become...
Baku Climate Action Week (BCAW) 2026 has begun in Azerbaijan’s capital, bringing together government representatives, business leaders, inves...
Pakistan faces a fresh test over preferential access to one of its biggest export markets as the European Union introduces a new GSP+ framework fro...
An eruption of Indonesia’s Mount Anak Krakatau has disrupted air travel, school activities and fishing operations, with hundreds of passengers stranded at Jakarta’s main airport on Sunday.
At least five people were killed and five others injured when an Amazon Prime Air cargo plane overran a runway and crashed while landing at Miami International Airport on Sunday, 6 September, local officials said.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on Sunday that the United States must recognise that the “rules of the game” in its war against Iran had changed “before it is too late”, a day after Washington struck several Iranian tankers in the Gulf.
Two Greek military pilots were killed on Saturday when an F-4 Phantom fighter jet crashed during an air show at Tanagra air base, north of Athens, officials said.
Russian President Vladimir Putin held more than three hours of talks with U.S. envoys Steve Witkoff and Jared Kushner in Moscow on efforts to end the Ukraine war.
U.S. special envoys Jared Kushner and Steve Witkoff have held talks with Ukrainian President Volodymyr Zelenskyy in Kyiv on Sunday on efforts to end Russia’s war in Ukraine.
A battle over the future of the European Union’s diplomatic service is deepening divisions over who controls the bloc’s foreign policy, as EU foreign affairs chief Kaja Kallas pushes back against plans to overhaul her service.
The Strait of Hormuz is moving into a more complicated stage of the U.S.-Iran war. Tehran says it will establish a new restricted maritime zone around the waterway, while Iran and Oman are preparing to formalise a separate shipping route intended to restore at least part of commercial traffic.
The European Union is preparing to boost investment in Greenland, as Brussels moves to deepen political and economic ties with the Arctic territory amid growing strategic competition involving the U.S., Russia and China.
North Korean leader Kim Jong Un has said a newly commissioned destroyer will become part of the country's nuclear response system, capable of delivering what he described as “annihilating retaliatory strikes”.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment