Dow Jones futures climbed 0.24% to trade above 48,450 during Thursday’s European session, extending gains as investor sentiment improved following the end of the United States (US) government shutdown. Futures linked to the S&P 500 and Nasdaq 100 also rose, adding 0.23% and 0.36% to trade near 6,900 and 25,700, respectively.
Market mood lifts as US reopens government
Optimism returned to Wall Street after President Donald Trump signed a funding bill to end the record 43-day government shutdown, restoring normal government operations and approving direct payments for individual healthcare purchases. The deal alleviated short-term fiscal concerns but did little to dispel broader uncertainty over the US economic outlook.
Still, the reopening supported a modest recovery in risk sentiment, helping stock futures edge higher after a choppy midweek session. Investors remain cautious, however, as attention turns back to the potential economic fallout from the shutdown and the path of Federal Reserve (Fed) policy.
Fed outlook remains mixed after dovish data, hawkish comments
Markets continue to weigh weaker-than-expected private labor data against recent hawkish remarks from Fed officials. The latest ADP employment figures for October reflected a slowdown in private-sector hiring, reinforcing bets on a possible rate cut in December.
However, those expectations have moderated slightly, with the CME FedWatch Tool showing a 60% probability of a 25-basis-point rate reduction next month down from 67% a day earlier.
Atlanta Fed President Raphael Bostic warned on Wednesday that cutting rates too quickly could “feed the inflation beast,” while Boston Fed President Susan Collins reiterated that inflation remains “elevated” and still requires “mildly restrictive policy.” Both policymakers indicated little evidence of rising downside risks to employment.
Wall street recap: healthcare and financials outperform
On Wednesday, Wall Street delivered mixed results as investors digested earnings and policy commentary. The Dow Jones climbed 0.68% to a new record high, while the S&P 500 edged up 0.06% and the Nasdaq 100 slipped 0.26%.
Healthcare stocks led gains, buoyed by strong earnings from Eli Lilly (+3%) and AbbVie (+3.6%), while financials also outperformed, with Goldman Sachs up 3.5%, JPMorgan up 1.5%, and American Express up 0.7%.
By contrast, the technology sector lagged as AI-related and megacap stocks retreated Tesla (-2.1%), Meta (-2.9%), and Palantir (-3.6%) all traded lower.
Looking ahead, sentiment is expected to remain supported by easing political risk, though traders will stay alert to further Fed guidance and upcoming US data releases for clues on the central bank’s next policy move.
