US stock futures showed signs of weakness on Tuesday as investors assessed the implications of President Trump’s recent tariff announcements amidst looming concerns of a government shutdown. Futures for the Dow Jones Industrial Average and the S&P 500 both fell by approximately 0.2%, while contracts for the tech-focused Nasdaq 100 experienced a slight decrease of around 0.1%. This decline followed modest gains made by Wall Street in the previous session.
In a meeting at the Oval Office on Monday, President Trump and Democratic leaders were unable to reach a consensus on a plan to prevent a government shutdown. With a critical deadline set for Wednesday at 12:01 a.m. ET, lawmakers face intense pressure to finalize an agreement to avert a partial shutdown. Vice President JD Vance remarked after the talks that he believed a shutdown was likely, indicating a challenging path ahead for negotiations.
Should a shutdown occur, significant disruptions would ensue, including widespread layoffs and potential travel chaos at airports. One of the more concerning aspects is the suspension of economic data publication—a vital resource for both the Federal Reserve and Wall Street—during the shutdown. The Department of Labor has stated that its Bureau of Labor Statistics will “completely cease operations,” with only one employee continuing work out of over 2,000 during this period.
As market participants look ahead, anticipation builds around the scheduled release of the September jobs report on Friday, especially following a recent wave of mixed economic indicators that have raised doubts about the Federal Reserve’s plans for future interest rate cuts. These uncertainties have created a shaky atmosphere in the market as differing viewpoints among policymakers become evident.
Despite the political deadlock and Trump’s new tariffs, stock prices began the week on a positive note. Investors are keenly awaiting earnings reports from Nike, as well as fresh data on job openings scheduled for release by the Bureau of Labor Statistics.
In premarket trading, several stocks have attracted attention. Wolfspeed saw a notable increase of over 15% after exiting Chapter 11 bankruptcy and reducing its debt significantly. Conversely, Intel’s stock dipped by 2% following a volatile trading week, despite its earlier surge fueled by potential investment from Apple. Newmont Corp. shares fell by 3% after the company announced a leadership change, marking the departure of CEO Tom Palmer at year-end.
In other headlines, YouTube, owned by Google, has agreed to pay $24.5 million to settle a lawsuit filed by President Trump, which stemmed from his suspension following the events of January 6, 2021. This settlement resolves claims of illegal censorship, placing YouTube among the final social media platforms to settle similar suits initiated by Trump. Parent company Alphabet’s stock remained largely unchanged in premarket trading following the news.
Additionally, gold prices have surged to record levels, driven by increased demand for safe-haven assets amid fears surrounding the potential government shutdown. This upward trend in precious metals highlights the growing investor anxiety as key deadlines approach in Washington.
