What is Driving the Markets Today?

U.S. stock futures rise as investors shrug off uncertainty around the ongoing government shutdown

U.S. stock index futures climbed on Friday, after Wall Street recorded new record highs despite uncertainty around the federal government shutdown and the postponement of employment data. Technology stocks were the main driver of growth, supported by optimism around artificial intelligence, but overall gains were limited as the shutdown entered its third consecutive day.

S&P 500 futures rose 16 points (0.2%), Nasdaq 100 futures gained 68 points (0.3%), and Dow Jones futures increased 101 points (0.2%).

ISM services ahead of employment data

Due to the government shutdown, investors will have to rely primarily on data from the Institute for Supply Management (ISM) regarding activity in the services sector. The delay of the monthly nonfarm payroll report leaves the Fed without a key benchmark, while the bank considers potential interest rate cuts to stimulate hiring and investment. The ISM services index for September is expected to dip slightly to 51.8 from 52.0 in August.

Applied Materials reports impact from new export restrictions

Applied Materials expects new U.S. export restrictions to reduce its revenue by approximately $110 million in the fourth quarter and $600 million in fiscal 2026. The expansion of the blacklist makes it harder to export products and provide services to certain customers in China. The company’s shares fell about 2.7% in after-hours trading.

Gold remains steady

Gold prices are on track to post a seventh consecutive weekly gain, supported by expectations for Fed rate cuts and uncertainty around the government shutdown. Spot gold rose 0.2% to $3,864.40 per ounce, while December futures increased 0.5% to $3,887.22/oz.

Oil heads for weekly decline

Oil prices rose slightly but are set for their largest weekly decline since late June, amid expectations that OPEC+ may increase production by up to 500,000 barrels per day in November. Brent futures gained 1.1% to $64.78 per barrel, while WTI futures rose 1.1% to $61.16 per barrel.