US stock index futures edged lower on Tuesday as investors grew cautious over the looming risk of a government shutdown, while awaiting key labour market and consumer sentiment reports that could shape the Federal Reserve’s policy stance.
At 5:07 a.m. ET, Dow E-minis fell 104 points, or 0.22%, S&P 500 E-minis slipped 11.25 points, or 0.17%, and Nasdaq 100 E-minis lost 39 points, or 0.16%.
Analysts noted that while shutdowns typically result in short-lived disruptions, the timing of the current threat is more delicate given uncertainties around growth and inflation.
“Shutdowns are more apt to be a temporary disruption rather than a permanent drag where the short-term economic impacts are often recouped over time,” said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers. “However, the length of any shutdown can impact the collection and release of important economic data, especially at a time when the economy is at a crucial juncture.”
The Federal Reserve’s data-dependent approach has heightened the importance of upcoming releases, with investors looking closely at the Job Openings and Labor Turnover Survey for August and the Conference Board’s consumer confidence index later in the day. A busy slate of Fed speakers, including Vice Chair Philip Jefferson and regional presidents Susan Collins, Austan Goolsbee and Lorie Logan, is also on watch for policy cues.
Despite the jitters, equities have held firm through the third quarter. The S&P 500, Nasdaq and Dow are all set to post gains for a second straight quarter, heading into what is historically a strong fourth quarter driven by year-end positioning and holiday spending.
Corporate updates are expected to play a bigger role in the coming weeks. Nike is due to report earnings after Tuesday’s close, offering insights into consumer demand and margins at a time of price hikes. In other moves, Wolfspeed surged 49% a day after exiting bankruptcy, while Firefly Aerospace tumbled 10.7% following a testing mishap that destroyed the core booster of its Alpha rocket.
Reuters
[SRC] https://www.businesstoday.com.my/2025/10/01/wall-street-futures-slip-as-shutdown-fears-cloud-economic-outlook/
