S&P500 and Nasdaq 100: Futures Steady as AI Stocks Defy Shutdown Risks

S&P 500 Futures Hold Steady as Government Shutdown Drags and AI Stocks Power Gains

Stock futures were flat Friday morning, holding on to Thursday’s record highs as traders balanced AI-fueled momentum with political gridlock in Washington. The government shutdown, now in its third day, has not significantly dampened sentiment, with S&P 500, Nasdaq 100, and Dow futures each up about 0.1% before the bell.

Markets rallied sharply on Thursday, led by heavy buying in artificial intelligence names, particularly Nvidia, which hit an all-time high. Despite the shutdown freezing federal operations and economic data releases, investor appetite for tech appears undeterred.

How is the Federal Shutdown Impacting Traders and Economic Data?

The shutdown has paused key government services, including the release of the September nonfarm payrolls report, depriving the Federal Reserve of crucial labor market data ahead of its next rate decision. While shutdowns have historically had minimal market impact, comments from Treasury Secretary Scott Bessent on Thursday warning of a hit to GDP and employment added a note of caution.

President Trump’s threat of mass federal layoffs is amplifying concerns over the jobs market. The Congressional Budget Office expects 750,000 federal workers to be furloughed daily, adding to the sense of uncertainty.

Still, traders appear to be pricing in short-term pain but no lasting economic damage, with equity indexes on track for a positive week. The S&P 500 is up 1.1%, the Nasdaq has gained 1.6%, and the Dow is higher by 0.6% week-to-date.

Which Stocks Are Moving Pre-Market and Why?

Apple dipped nearly 1% after Jefferies downgraded the stock, citing overly bullish expectations for future iPhone models.

Applied Materials dropped 2.2% following its disclosure that U.S. export controls would shave $110 million off Q4 revenue and $600 million in fiscal 2026.

GameStop slid 2.7% after announcing a mixed securities offering.

Uranium Energy fell 2% on plans to issue 15.5 million shares.

In contrast, USA Rare Earth surged 8.8% after its CEO said the firm is in active talks with the White House.

Freeport-McMoRan rose more than 1% following a UBS upgrade, which argued the stock had been overly punished after disruptions at its Grasberg mine.

Will AI Momentum Outweigh Economic and Policy Risks?

Thursday’s rally highlighted growing investor focus on AI-driven momentum trades, with Goldman Sachs noting a strong “Fear of Missing Out” replacing earlier concerns about overvaluation and slowing growth. CEO David Solomon, however, warned that tech-driven rallies tend to front-run fundamentals and may set up the market for a pullback.

For now, equity bulls are in control. But with economic data sidelined by the shutdown and Fed policy increasingly data-dependent, traders should monitor Washington closely. The longer the shutdown lasts, the more pressure builds on risk assets heading into earnings season and the next Fed meeting.

More Information in our Economic Calendar.