Dow Jones & Nasdaq 100 Extend Gains Ahead of House Funding Vote

US stock futures extended their gains in the Asian session on Wednesday, November 12. The Dow Jones and S&P 500 eyed three-day winning streaks. Market optimism that the House will pass the funding bill to reopen the US government lifted demand for risk assets after Monday’s Senate vote.

Rising optimism about the US economy and lingering hopes for a December Fed rate cut contributed to the modest morning gains. In contrast to optimism across corporate America, consumer pessimism over the job market is soaring.

The Kobeissi Letter shared the latest statistics, stating:

“71% of US consumers expect an increase in unemployment over the next 12 months, the highest since the 1980s peak. This percentage has DOUBLED in less than a year and is now above the 2008 peak. Additionally, the perceived probability of job loss among consumers hit 23%, the 2nd-highest in at least 15 years. Such grim labor market sentiment has never been seen outside of a recession.”

A sharply deteriorating labor market and cooling inflation would allow the Fed to cut rates aggressively to bolster the economy. However, US stock futures remain exposed to stagflation risks. The Fed could delay cutting rates if inflation remains elevated, even if the economy shows signs of slowing. While rate cuts could bolster risk appetite, growing stagflation concerns may limit gains.

US Stock Futures: Earnings, Fed Speakers, and Capitol Hill in Focus

Futures extended gains during Wednesday’s Asian session. The Dow Jones E-mini gained 21 points, the Nasdaq 100 E-mini climbed 83 points, while the S&P 500 E-mini rose 10 points.

Later on Wednesday, the House vote on the funding bill to reopen the government will take center stage. US stock futures could retest their October all-time highs if the House passes the funding bill.

Will the House vote spark a risk rally or trigger a pullback?

Given changes to the bill that the House had previously sent to the Senate, markets remain exposed to a prolonged shutdown.

Traders will also continue to monitor FOMC members’ speeches for views on inflation, the labor market, and potential economic fallout from the US government shutdown. Calls to delay rate cuts amid concerns over sticky inflation could raise stagflation risks and weigh on US stock futures. On the other hand, support for a December rate cut to bolster the labor market and broader economy may lift sentiment.

Meanwhile, corporate earnings will also be in focus, with Cisco (CSCO) in the spotlight.

Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500

Recent gains have pushed US stock futures further from key technical levels, indicating a bullish bias.

Near-term trends will hinge on the House vote, Fed chatter, and earnings. Key levels to monitor include:

Dow Jones

• Resistance: the October 28 record high of 48,214.
• Support: 48,000, 47,500, 47,000, and the 50-day EMA (46,700).

Nasdaq 100

• Resistance: 25,750, 26,000, then October 30 record high of 26,399.
• Support: 25,500, 25,250, then 50-day EMA (24,994).

S&P 500

• Resistance: October 30 record high of 6,954, then 7,000.
• Support: the 50-day EMA (6,718) and 6,500.

Market Outlook: US House Vote Looms

Traders brace for a pivotal session as the crucial House vote on the funding bill dominates sentiment.

Meanwhile, Fed speakers, speculation about the Supreme Court ruling on the legality of Trump’s tariffs, and earnings will provide a market distraction.

Given these key market drivers, US stock futures remain exposed to increased volatility in the coming sessions.

Follow our live coverage and consult the economic calendar for real-time market updates.