US stock futures fall as government shuts down

US stock index futures fell on Wednesday as investors weighed the impact of the federal government shutdown, which threatens to delay key economic data and complicate the Federal Reserve’s policy path.

At 05:39 a.m. ET, Dow futures slipped 0.49 per cent, S&P 500 futures lost 0.55 per cent and Nasdaq 100 futures dropped 0.63 per cent. Analysts warned the standoff in Washington could prolong uncertainty, with the release of September’s jobs report and other economic indicators now at risk.

According to Reuters, shutdowns have not historically derailed markets, but elevated valuations and investor caution could magnify volatility this time. Traders are closely watching the ADP employment report, ISM manufacturing PMI, and remarks from Fed officials for policy clues, as hopes remain for a 25-basis-point rate cut.

In corporate moves, Nike jumped 3.1 per cent in premarket after posting surprise revenue growth, Lithium Americas soared 31 per cent on a US Energy Department stake, while Enanta Pharmaceuticals and AAR Corp slumped after share offerings.

Attribution: Reuters

Subediting: Y.Yasser