US stock futures climbed on Friday as the market sentiment gets comfortable with the US government shutdown. Dow futures were more than 100 points up at press time, while futures tied to the S&P 500 and Nasdaq were also rising.
Wall Street seems to be buoyed by renewed investor optimism in artificial intelligence and expectations of a potential rate cut, with chip stocks like Nvidia and AMD taking the lead.
The investors are now looking past the delay in the release of crucial economic data and turning to other indicators to gauge the market mood and make important decisions.
5 things to know before Wall Street opens
1. The economic fallout from the US government shutdown is expected to be fairly manageable if it’s resolved quickly. But the longer it drags on, the bigger the risks.
Right now, about 750,000 federal employees are facing furloughs, which means key government services are paused and important data, like the September jobs report, is delayed.
Analysts say the US economy could take a hit of 0.1 to 0.2 percentage points of GDP for every week the shutdown continues, and that ripples out to affect consumer confidence, business investment, and market sentiment.
If the shutdown stretches on, the disruptions could get more serious, leading to job losses and slowing growth across multiple sectors, adding even more uncertainty to an already fragile economy.
2. In pre-market trading on Friday, biotech and tech stocks were stealing the spotlight. Actelis Networks shot up an eye-popping 54%, Cheer Holding jumped nearly 47%, and Xcel Brands climbed about 38%.
Other names like Nuburu and Astrotech Corporation also saw big gains, showing investors are still excited about innovation-driven sectors.
On the flip side, it wasn’t all green. Uni-Fuels Holdings plunged more than 50%, while FlexShopper and Nvni Group each dropped around 17–19%.
3. The S&P 100 hit a record high on Thursday, fueled by big gains in AI-focused tech stocks, with Nvidia and other semiconductor names leading the charge.
Investors were feeling optimistic about potential Federal Reserve rate cuts after private payroll data came in weaker than expected, giving the broader market a lift even with the government shutdown still ongoing.
4. As of Friday, Wall Street was holding its ground, trading close to record highs even with the US government shutdown still in play.
The S&P 500 and Nasdaq continued their upward streak for the week, thanks in large part to strong momentum in semiconductors and AI stocks, with Nvidia and AMD leading the charge.
Technicals suggest the bullish trend isn’t slowing down anytime soon. The S&P 500 has notched 30 record closes recently. Analysts point to favorable seasonality for Q4 and expectations of rate cuts as major tailwinds.
5. Global markets continued to show strength, fueled by excitement around artificial intelligence and expectations of Federal Reserve rate cuts.
In Asia, markets moved higher, Japan’s Nikkei rose 0.75%, and Chinese tech stocks hit multi-year highs, even with some holiday closures across the region.
In Europe, stocks gained modestly as worries over the US government shutdown eased a bit. Meanwhile, the US dollar weakened, helping gold climb to record highs, while oil came under pressure amid oversupply concerns.
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