U.S. stocks opened higher on Monday as investors looked ahead to a key jobs report later this week and monitored the risk of a potential federal government shutdown.
By 09:32 ET (13:32 GMT), the Dow Jones Industrial Average was up 71 points (0.2%), the S&P 500 gained 25 points (0.4%), and the Nasdaq Composite jumped 141 points (0.6%).
Markets had already closed the prior session on a positive note, supported by U.S. inflation data that matched expectations. However, all three indices still ended the week lower, with both the S&P 500 and Nasdaq breaking three-week winning streaks.
Jobs Report in Focus
Investors are waiting for September’s nonfarm payrolls report, due Friday, which will provide fresh insight into the U.S. labor market. The Federal Reserve has emphasized the importance of cooling job growth as it shifts policy. Earlier this month, the Fed cut interest rates by 25 basis points and signaled more reductions may follow.
Economists expect the U.S. to have added 51,000 jobs in September, compared to 22,000 in August. The unemployment rate is forecast to hold steady at 4.3%. Analysts warn that a stronger-than-expected jobs report could push the Fed to slow the pace of rate cuts.
Currently, traders are pricing in about 40 basis points of rate cuts by the end of 2025, down from earlier expectations of 65 basis points.
Government Shutdown Risk
Markets are also watching Washington, where Congress faces a September 30 deadline to pass a funding bill and avoid a shutdown. Since 1981, the U.S. has faced 14 partial shutdowns, with the longest lasting 34 days.
President Donald Trump is set to meet with congressional leaders on Monday to discuss the matter. He told Reuters over the weekend that he believes Democrats may be open to a deal.
Corporate Highlights
Carnival Corp stock rose 1% after the cruise operator raised its annual profit outlook for the third time this year. Fiscal 2025 adjusted earnings per share are now projected at $2.14, up from $1.97. Strong demand for cruises and higher onboard spending boosted results. Carnival reported record third-quarter revenue of $8.2 billion, beating analyst forecasts of $8.09 billion.
Commodities Update
Gold prices hit a record high above $3,800 per ounce, lifted by safe-haven demand tied to shutdown concerns and ongoing bets on Fed rate cuts. By 09:40 ET, spot gold climbed 1.8% to $3,826.59/oz, while futures rose 1.2% to $3,855.05/oz.
In energy markets, oil prices slipped after Iraq resumed crude exports from Kurdistan through Turkey following a 2.5-year pause. Reports of a possible OPEC+ production increase in November also weighed on prices. Brent crude fell 2.5% to $67.47 per barrel, while West Texas Intermediate dropped 2.9% to $63.83.
