December S&P 500 E-Mini futures (ESZ25) are up +0.36%, and December Nasdaq 100 E-Mini futures (NQZ25) are up +0.55% this morning, pointing to a higher open on Wall Street as investors wager that a resilient economy and further rate cuts from the Federal Reserve will continue to underpin corporate earnings.
However, gains in equity futures are limited as the U.S. government shutdown extends into another week. Higher bond yields today are also limiting gains in stock index futures.
This week, investors will focus on developments surrounding the government shutdown, the minutes of the Fed’s latest policy meeting, and comments from Fed officials.
In Friday’s trading session, Wall Street’s major equity averages closed mixed. Humana (HUM) surged over +10% and was the top percentage gainer on the S&P 500, extending Thursday’s gains after it reaffirmed its full-year earnings guidance. Also, Rumble (RUM) jumped more than +15% after announcing a partnership with Perplexity to integrate the company’s AI tools to improve video discovery on its platform. In addition, USA Rare Earth (USAR) climbed over +14% after CEO Barbara Humpton told CNBC that the company was “in close communication” with the White House. On the bearish side, Palantir Technologies (PLTR) slid more than -7% and was the top percentage loser on the S&P 500 and Nasdaq 100 following a report that the company’s battlefield communications system had serious flaws, a claim the company denied.
Economic data released on Friday showed that the U.S. ISM services index fell to a 4-month low of 50.0 in September, weaker than expectations of 51.8. At the same time, the U.S. September S&P Global services PMI was revised higher to 54.2 from the preliminary reading of 53.9.
Chicago Fed President Austan Goolsbee reiterated on Friday that policymakers should move cautiously with rate cuts as they navigate pressure to balance their inflation and employment goals. Also, Dallas Fed President Lorie Logan stated that the central bank remains further from achieving its inflation…
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