U.S. stock index futures steadied on Thursday evening after Wall Street logged another session of record highs despite heightened uncertainty over an ongoing government shutdown and delayed payrolls data.
Technology stocks were the biggest boost to Wall Street, as persistent cheer over artificial intelligence supported chipmaking stocks. But overall gains were seen wearing thin as a government shutdown appeared set to enter a third straight day.
Markets were also left wanting more cues on the labor sector, as the shutdown delayed key nonfarm payrolls data initially scheduled for Friday.
S&P 500 Futures steadied at 6,767.25 points, while Nasdaq 100 Futures steadied at 25,114.50 points by 19:24 ET (23:24 GMT). Dow Jones Futures were flat at 46,807.0 points.
Government shutdown continues, Bessent says this time could be different
Treasury Secretary Scott Bessent warned in a CNBC interview that this shutdown could hurt the economy more than those in the past, with potential hits to the GDP, growth, and the labor market.
The shutdown is set to enter its third day on Friday, after Congress failed to approve fresh government funding earlier this week.
Shutdowns have historically had limited impact on financial markets and the economy. This trend kept Wall Street largely upbeat in recent sessions.
The last shutdown occurred during Trump’s first term, and lasted 35 days between late-2018 and early-2019. The Congressional Budget Office estimated an impact of $11 billion on the economy from the shutdown, which was also the longest in U.S. history.
Nonfarm payrolls delayed, private labor data in focus
A major consequence of the shutdown was the likely delay of a monthly nonfarm payrolls report, which was initially scheduled for Friday.
This saw private labor market figures receive more attention. Thursday’s Challenger layoffs data and earlier ADP prints were watched for more cues on the labor market.
The Challenger data showed some improvement, with layoffs falling in September. But ADP data showed a substantial decline in private payrolls in September.
The labor market is a key consideration for the Federal Reserve in cutting interest rates, with the bank having enacted a cut in September to stem further jobs weakness.
Markets widely expect another 25 basis point cut by the Fed in October.
Wall Street upbeat on tech strength
Wall Street indexes closed higher for a fifth consecutive session on Thursday, with the S&P 500 inching up to a fresh record high.
But Wall Street’s pace of gains was seen slowing in recent sessions, with markets due for some profit-taking after a strong run-up in recent weeks.
The S&P 500 rose 0.1% to 6,715.38 points, while the NASDAQ Composite rose 0.4% to 22,844.05 points. The Dow Jones Industrial Average closed up 0.2% at 46,520.15 points. All three indexes were trading up between 0.5% and 2% this week.
Tech shares were the biggest boost to Wall Street, as chipmaking stocks were encouraged by news of more investment in artificial intelligence.
Tesla Inc (NASDAQ:TSLA) lagged, sliding over 5% as markets largely looked past strong third-quarter delivery figures. Future deliveries are expected to weaken with the eventual phasing out of electric vehicle tax credits by the U.S. government.
Source :
https://www.investing.com/news/stock-market-news/us-stock-futures-steady-after-wall-st-rises-past-shutdown-labor-uncertainties-4269628
