U.S. stock index futures slipped Tuesday evening after the Senate rejected a Republican-backed spending bill, raising the likelihood of a government shutdown starting at midnight. The political standoff, centered on healthcare and insurance subsidies, ended in a 55-45 vote against the measure, which required 60 votes to pass.
S&P 500 Futures dropped 0.3% to 6,717.50, Nasdaq 100 Futures slid 0.4% to 24,805.50, and Dow Jones Futures eased 0.2% to 46,572.00 by 20:17 ET (00:17 GMT). The decline came shortly after hawkish remarks from Dallas Federal Reserve President Lorie Logan, who signaled caution over potential interest rate cuts.
The futures’ losses followed a strong Wall Street session earlier in the day. The Dow Jones Industrial Average closed at a record high, rising 0.2% to 46,397.89. The S&P 500 gained 0.4% to 6,688.44, while the Nasdaq Composite added 0.3% to 22,660.01. Optimism surrounding artificial intelligence demand bolstered technology stocks, helping markets brush off shutdown concerns. However, airline stocks retreated on fears of disruption.
For the third quarter, U.S. markets posted notable gains. The S&P 500 advanced 7.8%, the Nasdaq jumped 11.2%, and the Dow climbed 5.2%, with all three indexes hitting record levels during the period.
While government shutdowns historically have had limited long-term effects on stock markets, they disrupt economic activity and could impact the labor market if federal layoffs expand. The shutdown is also expected to delay the release of crucial U.S. nonfarm payrolls data scheduled for Friday, adding to uncertainty for investors.
Political tensions intensified as President Donald Trump threatened further federal job cuts in response to the impasse. With no resolution in sight, traders are bracing for short-term volatility even as enthusiasm for AI-driven growth continues to lend support to equities.


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