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.
An Iranian tanker was hit by U.S. forces on Saturday near Iran's key oil export hub, Kharg Island, in the Gulf...
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar wi...
Spanish authorities are preparing a new site in Ceuta to accommodate hundreds of migrants who remain on the str...
Russian President Vladimir Putin has said that he thinks there is a chance of a peace being reached with Ukraine. He told the Eastern Economic Forum in Vladivostok, Russia that he believed there was "a chance of finding a solution," to the conflict.
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
The Iranian Army has again struck at U.S. bases in Kuwait and the United Arab Emirates in retaliation for U.S. attacks on southern and western parts of Iran late on Tuesday, which reportedly killed 18 people and injured more than 100 others.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar with the matter said. They were met by Russian Presidential Envoy Kirill Dmitriev.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar with the matter said. They were met by Russian Presidential Envoy Kirill Dmitriev.
Spanish authorities are preparing a new site in Ceuta to accommodate hundreds of migrants who remain on the streets following large-scale arrivals in July, local media reported Saturday.
A Chinese national was pulled alive from a tunnel in Nepal on Saturday, authorities said, 10 days after a wall of ice, rock and mud tore through a Himalayan valley, killing more than 1,300 people and leaving more than 5,600 missing.
At least two people were killed and dozens injured on Friday after an explosion at a military barracks in the Bolivian municipality of Viacha, about 30 km (20 miles) from La Paz, Defence Minister Ernesto Justiniano said.
The resolution, sponsored by African countries and led by Togo, passed by 164 votes to one, with six abstentions. The United States was the only country to vote against it.
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