United States stock futures traded lower Tuesday evening (Wednesday AEST) as investors weighed the possibility of a government shutdown that could disrupt economic data and federal operations.
By 9:35 am AEST (11:35 pm GMT), Dow futures eased 0.1%, while S&P 500 and Nasdaq 100 futures each declined 0.2%.
Nike provided a bright spot in after-hours trading, rising 3.7% following its quarterly earnings report. First-quarter revenues came in at $11.7 billion, up 1% from a year earlier on a reported basis.
The weakness in futures comes as Washington faces a midnight deadline to keep the government funded.
The Republican-controlled Senate is expected to hold a second vote on a temporary spending measure, with Democrats pushing to include an extension of health care tax credits for millions of Americans.
The U.S. Securities and Exchange Commission on Tuesday instructed staff to prepare for a funding lapse, Reuters reported.
The Congressional Budget Office estimated that about 750,000 federal employees could be furloughed each day if the government closes.
Markets are expected to focus on how long any shutdown might last, as an extended stoppage could prevent the release of crucial economic data ahead of the Federal Reserve’s late-October meeting.
The Labor Department has said it would suspend nearly all operations, including the release of September’s nonfarm payrolls report scheduled for Friday.
If the government fails to deliver its jobs data, investors will look to private-sector indicators for guidance. ADP’s monthly report on employment, due Wednesday morning, will likely carry added weight.
