U.S. stock futures edged higher on Wednesday evening after Wall Street ended lower in regular trading, as investors looked ahead to weekly jobless claims and the Federal Reserve’s preferred inflation measure later this week.
Gains were capped by concerns over a looming partial government shutdown as lawmakers remain locked in a funding standoff, with both chambers struggling to agree on a short-term extension.
S&P 500 Futures inched 0.1% higher to 6,701.0 points, while Nasdaq 100 Futures ticked up 01% to 24,768.75 points by 20:18 ET (00:18 GMT). Dow Jones Futures also gained 0.1% to 46,504.0 points.
Markets await jobs data, PCE inflation Wall Street closed lower in regular trading, weighed down by weakness in technology shares. The S&P 500 and the NASDAQ Composite declined 0.3% each, while the Dow Jones Industrial Average slipped 0.4%.
Fed Chair Jerome Powell, speaking on Tuesday, reiterated that there is “no risk-free path” for the central bank as it weighs risks from both inflation and a cooling labor market.
He said asset prices appeared “fairly highly valued” and warned against assuming that recent progress on inflation guaranteed a smooth path lower. His remarks reinforced expectations that the Fed will remain cautious in adjusting monetary policy.
Investors are now focused on economic data due in the coming days. Weekly jobless claims, due Thursday, are expected to show 233,000 initial claims for the week ended Sept. 20, after falling to 231,000 the prior week. Investors also await a final reading on second-quarter gross domestic product growth due on Thursday.
The August personal consumption expenditures (PCE) price index, due Friday, is forecast to show core inflation running near 2.9% year-on-year, a level still above the Fed’s 2% target.
Investors remain cautious, with many unwilling to take large positions before Thursday and Friday’s data releases provide clearer signals on the Fed’s policy path into year-end.
Govt shutdown looms; White House reportedly plans mass firings The Senate last week rejected a Republican-backed stopgap bill that would have kept the government funded until Nov. 21, citing Democratic opposition over the exclusion of healthcare and Medicaid provisions.
The U.S. government is on track for a partial shutdown on Sept. 30.
A Politico report late Wednesday said that the White House budget office has instructed federal agencies to prepare layoff plans that could trigger mass firings if a government shutdown occurs next week.
AI-linked stocks drag Wall St; Intel jumps on potential Apple investment AI-linked stocks including Nvidia (NASDAQ:NVDA) and Oracle Corporation (NYSE:ORCL) continued to lead the market lower for a second straight day.
Micron Technology Inc (NASDAQ:MU) slipped despite the memory chip manufacturer posting a fresh quarter of growth fueled by soaring demand from AI developers.
Meanwhile, shares of Intel Corporation (NASDAQ:INTC) jumped over 6% on Wednesday after a Bloomberg report said the company approached Apple Inc (NASDAQ:AAPL) about a potential investment in the struggling chipmaker.
