U.S. stock futures rose slightly on Sunday evening as investors turned their attention to critical bipartisan talks aimed at preventing a government shutdown later this week.
The modest gains in futures came after Wall Street ended higher on Friday. Inflation data met expectations, boosting confidence in at least two more interest rate cuts this year. However, the S&P 500 still closed the week lower, snapping a three-week winning streak due to losses in major technology stocks.
By 19:25 ET (23:25 GMT), S&P 500 Futures were up 0.1% at 6,704.0 points. Nasdaq 100 Futures also added 0.1% to reach 24,761.25 points, while Dow Jones Futures gained 0.1% to 46,606.0 points.
Government shutdown fears grow as deadline nears
Funding for U.S. government operations will expire at midnight on September 30 if Congress fails to agree on a new budget. Lawmakers remain divided, with Republicans supporting a short-term funding bill until November, while Democrats insist on reversing healthcare and Medicaid spending cuts before approving any resolution.
Congressional leaders from both parties are scheduled to meet President Donald Trump on Monday to discuss possible legislation. Trump told Reuters that he believed Democrats were willing to strike a deal.
A shutdown this week could delay the release of key labor market data expected on Friday. A prolonged shutdown would risk disrupting more economic reports and could significantly impact overall economic activity. The last U.S. government shutdown, which lasted 35 days between late 2018 and early 2019, cost the economy an estimated $11 billion, according to the Congressional Budget Office.
Wall Street gains after inflation data but ends week lower
On Friday, Wall Street indexes rose after the PCE price index— the Federal Reserve’s preferred measure of inflation— came in line with expectations for August. The results indicated that Trump’s trade tariffs did not drive prices higher than feared, allowing investors to stay focused on future Fed rate cuts.
Markets are now pricing in a 90.8% probability of a 25-basis-point rate cut in October and a 63.8% chance of another cut in December, according to CME FedWatch.
The S&P 500 closed Friday up 0.6% at 6,643.70 points. The Nasdaq Composite gained 0.4% to 22,484.07 points, while the Dow Jones Industrial Average climbed 0.7% to 46,247.29 points. Still, all three major indexes ended the week lower after sliding from recent record highs, weighed down by declines in technology shares.
