U.S. stock index futures fell slightly on Monday evening amid growing signs that the government was headed for a shutdown this week, which could delay the release of key labor data.
Futures retreated after a mildly positive session on Wall Street, as investors piled into technology stocks on sustained bets that the Federal Reserve cut interest rates further in the coming months. But overall gains on Wall Street were held back by caution over a looming shutdown.
S&P 500 Futures fell 0.1% to 6,708.25 points, while Nasdaq 100 Futures fell 0.1% 24,816.25 points by 20:02 ET (00:02 GMT). Dow Jones Futures were a touch lower at 46,583.0 points.
US headed for a shutdown as Trump mediation does little The U.S. government will enter a shutdown if Congress fails to extend funding beyond Tuesday Midnight (0400 GMT Wednesday).
Vice President JD Vance told reporters this scenario appeared to be likely after talks between President Donald Trump and bipartisan leaders marked little progress.
The current political impasse is centered around disagreements over healthcare spending and social welfare programs. While the Republicans do hold a 53-seat majority in the Senate, they still need 60 votes to advance a proposed spending bill.
Shutdowns have historically had little impact on corporate earnings. But they still tend to disrupt economic activity. The last time the government was shut down was for a period of 35 days in late-2018 to early-2019.
The Congressional Budget Office estimated the shutdown reduced gross domestic product by about $11 billion.
A shutdown this week could delay the release of September’s nonfarm payrolls data, which is due on Friday.
Wall St buoyed by tech, but other sectors lag Wall Street indexes rose past concerns over a shutdown, as optimism over artificial intelligence and lower interest rates spurred more trades into tech shares.
Strength in tech helped offset middling moves in other sectors, which were still pressured by concerns over a shutdown.
A prolonged shutdown could delay the release of future economic data and could also leave the Fed flying blind when it meets in late-October. Layoffs at federal agencies could also further dent the labor market.
The S&P 500 rose 0.3% to 6,661.21 on Monday. The NASDAQ Composite rose 0.5% to 22,592.0 points, while the Dow Jones Industrial Average rose 0.2% to 46,316.07 points.
Wall Street was supported by consistent bets that the Federal Reserve will cut interest rates further in the coming months, although upcoming data on inflation and the labor market is likely to factor into its decision.
