US STOCKS-Wall Street futures on stronger footing as government shutdown concerns take center stage

BY Reuters | ECONOMIC | 09/29/25 05:35 AM EDT

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Futures up: Dow 0.36%, S&P 500 0.51%, Nasdaq 0.67%

Sept 29 (Reuters) - U.S. stock index futures rose on Monday, in a firm start to a potentially eventful week, as investors await remarks from a slate of Federal Reserve policymakers and weigh the threat of a government shutdown.

The in-line inflation print on Friday helped keep rate cut bets alive, helping the three major indexes to notch up gains even as they posted losses for the week.

At 04:57 a.m. ET, Dow e-minis were up 169 points, or 0.36%, U.S. S&P 500 E-minis were up 34.3 points, or 0.51%, and Nasdaq 100 E-minis were up 166 points, or 0.67%.

Attention is now riveted on a standoff between Republicans and Democrats over funding that has raised the prospect of a shutdown beginning Wednesday, the first day of the U.S. government's 2026 fiscal year.

"If there is a shutdown, and the Bureau of Labor Statistics cannot publish the employment or inflation data, an October cut is at risk of being delayed," wrote Thomas Simons, chief U.S. economist at Jefferies.

President Donald Trump's administration has also threatened to permanently remove workers from some federal agencies if funding runs out, a move that could lead to a spike in jobless claims for October.

"We are in uncharted territory here, to some extent, so it is too early to tell what the eventual impact might be," Simons added.

The developments come at a critical juncture for markets, as any disruption to economic data could muddy the outlook and inject fresh volatility.

Fed officials have stressed their data-dependent approach and losing visibility into key indicators could complicate policy decisions.

Cleveland Fed President Beth Hammack, in an interview with CNBC on Monday, said the central bank needs to maintain restrictive monetary policy to keep inflation in check.

Several other Fed policymakers are also scheduled to speak through the day, including New York Fed President John Williams, St. Louis Fed President Alberto Musalem, Atlanta Fed President Raphael Bostic and Fed Governor Christopher Waller.

Investors will be watching closely for any signs of concern over the potential loss of economic visibility should a shutdown materialize.

Also on the docket Monday is the National Association of Realtors' pending home sales index for August. A leading indicator of housing activity, the report comes as the sector continues to struggle with elevated mortgage rates.

In premarket trading, U.S.-listed shares of cannabis-related companies rose with Canopy Growth (CGC) and Cronos Group (CRON) climbing 21% and 11%, respectively. Trump on Sunday shared a video promoting the health benefits of hemp-derived cannabidiol.

Electronic Arts (EA) dipped 1% after closing 15% higher on Friday. The video-game maker is in advanced talks to go private at a valuation of roughly $50 billion, sources familiar with the matter told Reuters on Friday. (Reporting by Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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