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U.S. Stock Futures Edge Higher as Government Shutdown Talks Intensify

U.S. Stock Futures Edge Higher as Government Shutdown Talks Intensify. Source: Carlos Delgado, CC BY-SA 3.0, via Wikimedia Commons

U.S. stock index futures rose slightly on Sunday evening, as investors monitored ongoing bipartisan negotiations aimed at preventing a government shutdown later this week. The modest gains followed a positive Friday session on Wall Street, where inflation data in line with expectations boosted bets on at least two more Federal Reserve interest rate cuts this year. Still, the S&P 500 ended its three-week winning streak, pressured by weakness in technology stocks.

By 19:25 ET (23:25 GMT), S&P 500 Futures rose 0.1% to 6,704.0, Nasdaq 100 Futures added 0.1% to 24,761.25, and Dow Jones Futures climbed 0.1% to 46,606.0.

The focus now turns to U.S. lawmakers as funding for government operations is set to expire at midnight on September 30. Republicans are advocating a short-term stopgap funding bill through November, while Democrats insist on reversing recent cuts to healthcare and Medicaid. Congressional leaders from both parties are scheduled to meet President Donald Trump on Monday to hammer out a resolution. Trump expressed optimism, telling Reuters he believed Democrats were willing to reach an agreement.

A government shutdown could delay the release of Friday’s crucial labor market report and, if prolonged, risk disrupting other economic data and broader economic activity. The last major shutdown, lasting 35 days between late 2018 and early 2019, was estimated by the Congressional Budget Office to have reduced GDP by about $11 billion.

On Friday, Wall Street gained after the PCE price index, the Fed’s preferred inflation gauge, showed expected results for August. The data suggested that Trump’s tariffs did not trigger as sharp a rise in inflation as feared, reinforcing market expectations for further monetary easing. According to CME FedWatch, traders now price a 90.8% chance of a 25 basis-point rate cut in October and a 63.8% chance of another cut in December.

The S&P 500 closed Friday up 0.6% at 6,643.70, the Nasdaq Composite rose 0.4% to 22,484.07, and the Dow Jones added 0.7% to 46,247.29. However, all three indexes ended the week lower, retreating from recent record highs amid tech-driven losses.

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