Dow Jones & Nasdaq 100 Futures Rise on Capitol Hill Hopes

US stock futures consolidated early-week gains in the Asian session on Tuesday, November 11, as investors focused on Capitol Hill and progress toward reopening the US government.

The US Senate approved a funding measure to reopen the government, potentially ending a record 41-day shutdown. Eight Democrats crossed the aisle in a 60-40 decision to break the stalemate, bolstering demand for risk assets. US government funding expired on October 1.

House Members Dash to Washington Ahead of Key Vote

Members of the House of Representatives are reportedly returning to Washington with a vote expected as early as Wednesday, November 12. If the Republican-controlled House approves the bill, it would make its way to President Trump’s desk, potentially reopening the government on Friday, November 14.

CN Wire reported on the developments in Washington, stating:

“The record 41-day US government shutdown is set to end after the Senate passed a temporary funding bill in a 60-40 vote on Monday, with the House expected to approve it soon. The measure, endorsed by President Donald Trump, funds most government agencies through Jan. 30 and some through Sept. 30, while guaranteeing back pay for federal workers and preventing layoffs.”

With the Senate’s approval secured, attention now turns to the House of Representatives, where a swift vote could end the record shutdown.

Economic Fallout from the Shutdown

As market focus shifts to the House, economists will likely consider the economic fallout from the prolonged shutdown. Consumer sentiment waned in November, with the Michigan Consumer Sentiment Index falling from 53.6 in October to 50.3 in November.

Nevertheless, sentiment may receive an initial boost if the House approves the measure and corporate earnings exceed expectations. Key earnings include Cisco Systems (CSCO) and The Walt Disney Company (DIS). However, AI-related company results will also face scrutiny following recent concerns about valuations.

US Stock Futures: Fed Speakers and Capitol Hill in Focus

US stock futures edged higher during Tuesday’s Asian session. The Dow Jones E-mini climbed 20 points, the Nasdaq 100 E-mini gained 10 points, while the S&P 500 E-mini advanced 2 points.

Later on Tuesday, developments from Capitol Hill will influence market sentiment. Market sensitivity to headlines regarding the House vote will likely intensify ahead of Wednesday’s anticipated decision.

Traders will also monitor Fed speakers for insights into the economic outlook, inflation, and monetary policy. Stagflation risks linger given the recent surge in job cuts and elevated inflation. The absence of key US economic data has fueled uncertainty about the economy and the Fed rate path, leaving US stock futures trading below their record highs.

Easing fears of a US recession and hints of a softer inflation outlook could boost bets on a December Fed rate cut and lift sentiment. However, Fed concerns about inflation may weigh on risk assets.

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

Monday’s breakout and Tuesday’s gains left US stock futures above key technical levels, indicating a bullish bias.

Near-term trends will hinge on updates from Capitol Hill, Fed chatter, and US data. Key levels traders should monitor include:

Dow Jones

• Resistance: 47,500, and the October 28 record high of 48,214.
• Support: 47,250, 47,000, and the 50-day EMA (46,623).

Nasdaq 100

• Resistance: 25,750, 26,000, then October 30 record high of 26,399.
• Support: 25,500, 25,250, then 50-day EMA (24,967).

S&P 500

• Resistance: October 30 record high of 6,954, then 7,000.
• Support: the 50-day EMA (6,710) and 6,500.

Market Outlook: US House Vote Key

Traders brace for an uncertain few sessions, with the House vote now crucial. Speculation about the House vote is likely to influence sentiment ahead of Wednesday’s anticipated vote.

Meanwhile, a Supreme Court ruling on the legality of Trump’s tariffs remains a curveball. Existing tariffs and their effect on inflation also challenge the Fed’s balancing act of supporting the labor market while combating inflation.

Given these competing market forces, US stock futures may experience heightened volatility in the sessions ahead.

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