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postUS stock futures faltered on Tuesday as investors weighed the likely fallout of President Trump’s latest tariff blitz with the US government on the brink of a shutdown.
Futures on the Dow Jones Industrial Average (YM=F) and on the S&P 500 (ES=F) both dropped roughly 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) nudged down about 0.1%, on the heels of modest closing gains on Wall Street.
President Trump met with Democrats in the Oval Office on Monday, but both sides left the talks indicating they had made no progress on striking a deal that would avert a government shutdown. Lawmakers have until Wednesday at 12:01 a.m. ET to reach an agreement or else a partial government shutdown is set to begin.
“I think we’re headed to a shutdown,” Vice President JD Vance said after the meeting.
If a stoppage goes forward, in addition to mass firings and chaos at the airport, the government is set to cease publishing economic data at a time when the Federal Reserve and Wall Street have a particular need for it. The Department of Labor said its Bureau of Labor Statistics (BLS) would “completely cease operations” during a stoppage, with just one of 2,055 full-time employees continuing to work.
Wall Street and the Fed are anxious to receive Friday’s release of the September jobs report as scheduled. A slew of mixed economic data has shaken confidence in the Fed’s expectation of two more rate cuts this year as a sure thing, especially as apparent divisions emerge among policymakers.
Despite gridlock in Washington, along with new tariffs announced by Trump on Monday, stocks inched up to start the week.
Looking forward, Nike (NKE) is expected to report earnings after the bell, and investors are set to receive the latest data on job openings from the BLS.
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What a government shutdown could look like
“I think we’re headed to a shutdown,” Vice President JD Vance said overnight, as both sides left an Oval Office meeting saying no deal is in the immediate offing.
The lack of progress boosts the odds of the first government stoppage since 2019, which could begin one minute after midnight on Tuesday, unless a last-minute deal is struck.
Yahoo Finance’s Ben Werschkul lays out the likely fallout:
Read more here.
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Premarket trending tickers: Wolfspeed, Intel and Newmont
Here’s a look at some of the top stocks trending in premarket trading:
Wolfspeed (WOLF) stock soared over % in premarket trading on Tuesday after the chipmaker said it had exited a Chapter 11 bankruptcy after cutting its total debt by almost 70%.
Intel (INTC) stock fell 2% before the bell on Tuesday after surging over 20% during last weeks trading. Intel seeking investment from Apple (AAPL) had sent the chipmakers stock up.
Newmont Corp. (NEM) shares fell 3% premarket after announcing a change to their leadership on Monday, with the exit of Newmont’s CEO Tom Palmer on Dec. 31.
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Google’s YouTube to pay $24.5 million to settle Trump Jan. 6 lawsuit
Google-owned YouTube has agreed to pay $24.5 million to settle a lawsuit filed by President Trump, after he was suspended from the video platform following the Jan. 6, 2021 riot.
Shares in parent company Alphabet (GOOG, GOOGL) were little changed in premarket trading after the deal was disclosed on Monday.
The settlement resolves Trump’s claim that the banishment from his channel amounted to illegal censorship.
It also makes Google’s YouTube the last of the three social-media giants sued by Trump to settle over Jan. 6 bans. Meta (META) agreed to pay $25 million to end a Facebook-related suit in January, while X laid out about $10 million in February over a Twitter suspension, according to The Wall Street Journal.
Bloomberg reports:
Read more here.
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Gold reaches new record with government shutdown fears driving haven demand
Bloomberg reports:
Read more here.
