Nasdaq and S&P 500 Futures Climb Amid Second Week of Government Shutdown

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ago 3 hours

Nasdaq and S&P 500 Futures Climb Amid Second Week of Government Shutdown

U.S. stock futures demonstrated a positive trend on Monday, following a mixed performance in the previous session. The major benchmark indices saw upward movement amid an ongoing government shutdown. This shutdown is expected to persist into the week, with a Senate procedural vote on Friday failing to achieve the necessary 60 votes for advancement.

Market Updates: Nasdaq and S&P 500 Futures Climb

The major stock futures experienced the following changes:

Dow Jones: +0.11%
S&P 500: +0.27%
Nasdaq 100: +0.47%
Russell 2000: +0.29%

The SPDR S&P 500 ETF Trust (NYSE: SPY) increased by 0.31% to $671.27, while the Invesco QQQ Trust ETF (NASDAQ: QQQ) rose by 0.50% to $606.19.

Impact of Government Shutdown

The federal government shutdown, which began earlier this month, may continue until at least mid-October, according to predictions by Polymarket. A significant 70% probability forecast suggests the shutdown could last beyond October 15.

Charlie Bilello, Chief Market Strategist at Creative Planning, noted that historical data indicates government shutdowns often have a limited impact on stock markets. He referenced the 2018 shutdown, which saw the S&P 500 rallying by 10% over 35 days.

Recent Economic Indicators

Despite the shutdown hindering the release of monthly employment statistics from the Bureau of Labor Statistics, private data indicated some worrying trends in the labor market. The ADP Employment Report revealed the largest private sector job losses in over two years, while the ISM Services PMI showed continued contraction in employment.

Key financial statistics included:

10-Year Treasury Yield: 4.14%
2-Year Treasury Yield: 3.57%
Bitcoin Price: Exceeded $125,000, marking a new all-time high.

Future Economic Developments

This week, key figures in the Federal Reserve, including Fed Chair Jerome Powell and other regional presidents, will speak at various events. Economic data releases are anticipated, although some may be delayed due to the government shutdown.

Stocks in Focus

Several companies are drawing attention as they prepare to report earnings:

Constellation Brands Inc. (NYSE: STZ): Expected earnings of $3.42 per share.
Aehr Test Systems (NASDAQ: AEHR): Anticipated quarterly earnings loss of $0.01 per share.
Plug Power Inc. (NASDAQ: PLUG): Continuously rising stock, up by 20.21% recently.
Lithium Americas Corp. (NYSE: LAC): Increased by 6.53% following a preliminary agreement with the DOE.

Global Market Movements

In commodity trading, crude oil prices rose by 1.56% to approximately $61.90 per barrel. Gold prices also increased by 1.45%, reaching around $3,943.01 per ounce. Global markets showed mixed signals, with Asian indices generally closing higher.

Overall, the financial landscape remains dynamic as investors monitor potential developments regarding the government shutdown and forthcoming economic data.