Dow Jones & Nasdaq 100 Futures Rise as Yen Slides; US Senate Vote Next

Japanese Wage Growth Slumps, Lifting Risk Sentiment

The yen’s tumble revived risk appetite across global markets, but US fiscal deadlock kept gains in check.

US stock futures were recovering in morning trading on Wednesday, October 8. Japanese wage growth figures sank bets on an October Bank of Japan rate hike. The slump in wage growth and potential delays to BoJ monetary policy tightening sent USD/JPY to a morning high of 152.647, its highest level since February 2025.

The weaker Japanese yen could boost carry trades and drive demand for risk assets such as US stock futures.

US Senate Stopgap Funding Bill Vote Looms

Traders remain on edge ahead of a pivotal Senate vote that could prolong fiscal paralysis.

While the yen’s slump lifted sentiment, US stock futures saw modest gains. Uncertainty over the potential impact of the government shutdown on the US economy limited the upside. The 2018-19 shutdown shaved roughly 0.4% off the US GDP. A similar effect on the US economy in 2025 may fuel stagflation risks, potentially weighing on sentiment.

The impasse on a stopgap funding bill continued overnight, extending the government shutdown into its ninth day on Wednesday, October 8. A Senate vote is expected today, with another failed vote likely to add to the economic uncertainty.

Gold price trends reflected growing market unease, climbing 0.65% to $4,010 in morning trading. The Kobeissi Letter commented on gold and oil price trends and potential market stress, stating:

“Gold prices relative to crude oil prices have jumped to 64 points, the highest since the 2020 pandemic. The ratio has TRIPLED over the last 2 years. Excluding the 2020 pandemic drop of crude oil prices, the ratio is now at its highest level in at least 35 years. Historically, an elevated gold-to-oil ratio signaled stress in the global economy or the financial system.”

How Are US Stock Futures Moving on Yen Losses and Economic Uncertainties?

US stock futures advanced in morning trading, partially recovering the previous day’s losses. The Dow Jones E-mini rose 30 points, the Nasdaq 100 E-mini gained 37 points, and the S&P 500 E-mini advanced 7 points.

Later Wednesday, traders should closely monitor Fed speeches and the FOMC meeting minutes for clues on the Fed’s policy stance. Rising support within the Fed for multiple Fed rate cuts in October and December could boost demand for US stock futures. Conversely, renewed concerns over inflation may weigh on risk assets.

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

Following the morning gains, US stock futures trade above the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a short-term bullish bias.

However, the near-term outlook hinges on the US Senate vote, Fed rhetoric, and upcoming economic data. A government reopening could expedite the release of delayed US labor market data. Key levels traders are monitoring include:

Dow Jones

• Resistance: 47,000, the October 3 record high of 47,323, 47,500.
• Support: 46,500, 46,000, the 50-day EMA (45,759).

Nasdaq 100

• Resistance: October 7 record high of 25,275, 25,500.
• Support: 25,000, 24,500, the 50-day EMA (24,101).

S&P 500

• Resistance: October 7 record high of 6,803, 7,000.
• Support: 6,600, the 50-day EMA (6,561).

US Futures Market Outlook: Key Events for Traders to Monitor

US stock futures could experience increased volatility. While Japanese data eased BoJ rate hike bets, the US Senate vote and the Fed’s policy stance would likely to influence sentiment.

A failed Senate vote and Fed concerns about inflation could send US stock futures lower. On the other hand, a government reopening and Fed support for multiple Fed rate cuts could lift risk appetite.

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