Dow Jones & Nasdaq 100 Futures Climb as Government Reopens
‘Each week, a shutdown subtracts about 0.1% from annualized GDP growth via reduced government activity. There could be a sentiment channel as well if the duration of the shutdown enters uncharted territory.”
Traders will now wait for crucial inflation and labor market data to assess the timeline for a Fed rate cut and fallout from the shutdown.
US Stock Futures: Fed Speakers and Earnings in Focus
Futures extended gains during Thursday’s Asian session. The Dow Jones E-mini climbed 71 points, the Nasdaq 100 E-mini gained 26 points, while the S&P 500 E-mini advanced 3 points.
Later on Thursday, US inflation figures will come under market scrutiny amid concerns over stagflation. Economists forecast headline and underlying inflation to remain at 3% in October. In line with, or hotter-than-expected, numbers will likely temper bets on a December Fed rate cut. A less dovish Fed rate path could fuel stagflation fears and weigh on US stock futures.
Beyond the inflation data, traders should also monitor FOMC members’ speeches. Insights into the potential economic fallout from the shutdown, inflation, and the labor market will influence sentiment.
Meanwhile, corporate earnings will also be in focus, with The Walt Disney Company (DIS) among the key names to watch.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
US stock futures have pulled further away from key technical levels, signaling bullish momentum.
Near-term trends will hinge on incoming US data, Fed commentary, and earnings. Key levels to monitor include:
Dow Jones
- Resistance: the November 12 record high of 48,528.
- Support: 48,000, 47,500, 47,000, and the 50-day EMA (46,780).