U.S. stock index futures fell further on early-Wednesday as the U.S. government began shutting down after Congress failed to approve more funding for federal agencies.
Wall Street was also grappling with more hawkish comments from Federal Reserve officials, after Dallas Fed President Lorie Logan flagged caution over future interest rate cuts.
S&P 500 Futures fell 0.4% to 6,709.50 points, while Nasdaq 100 Futures fell 0.5% to 24,775.25 points by 00:05 ET (00:05 GMT). Dow Jones Futures fell 0.4% to 46,501.0 points.
Futures weakened after a positive session on Wall Street, as strength in technology and optimism over artificial intelligence growth helped investors look past concerns over a shutdown. The Dow Jones eked out a record closing high.
US shutdown begins after GOP funding bill fails in Senate
A government shutdown began on midnight, Tuesday (0400 GMT Wednesday), after a Republican-backed bill to fund the government failed to gain a majority in the Senate.
Services ranging from air traffic control to disaster relief are expected to be impacted, while thousands of federal employees face potential furloughs.
Friday’s nonfarm payrolls reading for September is also expected to be delayed.
Senate Democrats almost unanimously opposed the Republican spending bill, calling for the inclusion continued healthcare subsidies in the legislation.
The bill– which was earlier this month approved by the House of Representatives– was rejected in a 55-45 vote. The bill required at least 60 “yes” votes to be approved.
U.S. President Donald Trump added fuel to the fire by threatening to fire more federal workers in the event of a shutdown.
Shutdowns have historically had a limited impact on stock markets. But they tend to disrupt economic activity across the country, while any more federal layoffs could also weigh on the job market.
Wall St rises past shutdown jitters, marks strong Q3
Wall Street indexes firmed for a second straight session on Tuesday, remaining close to record highs despite lingering concerns over a shutdown. All three benchmark indexes also logged strong gains for the third quarter.
Technology stocks were a major support amid persistent cheer over artificial intelligence demand. On the other hand, airline stocks were sold off on fears of shutdown-related disruptions.
The S&P 500 rose 0.4% to 6,688.44 points, while the NASDAQ Composite rose 0.3% to 22,660.01 points. The Dow Jones Industrial Average rose 0.2% to 46,397.89 points– a record closing high.
The S&P 500 rose 7.8% in Q3, while the Nasdaq and Dow added 11.2% and 5.2%, respectively. All three indexes hit a series of record highs in the past quarter.
Source :
https://www.investing.com/news/stock-market-news/us-stock-futures-dip-as-govt-shutdown-appears-imminent-4264895
