U.S. stock futures advanced Friday, extending a week of record-breaking gains on Wall Street despite political uncertainty from the government shutdown and delayed labor data.
At 05:45 ET (09:45 GMT):
- Dow Jones Futures: +160 points (+0.4%)
- S&P 500 Futures: +22 points (+0.3%)
- Nasdaq 100 Futures: +80 points (+0.3%)
On Thursday, all three major indexes set fresh highs, driven by persistent optimism around artificial intelligence and strong demand for chipmakers. For the week, the S&P 500 is up 1.1%, the Dow 0.6%, and the Nasdaq 1.6%.
Still, analysts caution that the rally may be vulnerable to political and economic risks as the shutdown drags into its third day.
Shutdown Overshadows Data Releases
Treasury Secretary Scott Bessent warned Thursday that this shutdown could weigh more heavily on the economy than past closures. While shutdowns have historically had a muted market effect, the 2018–2019 episode lasted 35 days and cost the economy $11 billion, according to the Congressional Budget Office.
Analysts at Capital Economics suggested that a cooling labor market may present a greater risk than the shutdown itself, pointing to “downside risks” across equities, Treasury yields, and the dollar.
Key developments:
- Challenger layoffs: declined in September, suggesting some labor market resilience.
- ADP payrolls: showed sharp declines in private hiring.
- Jobs report: official nonfarm payrolls data delayed due to the shutdown.
With the data blackout, investors are shifting attention to private indicators and the upcoming ISM services report.
ISM Services PMI in Focus
Friday’s spotlight will fall on the Institute for Supply Management’s (ISM) non-manufacturing PMI, which measures U.S. services activity.
Economists expect a slight decline to 51.8 in September from 52.0 in August. A reading above 50 signals expansion and could offer insight into the health of a sector that accounts for most U.S. output.
Meanwhile, corporate news is adding to investor focus:
- Apple (AAPL): agreed to remove ICEBlock and other controversial apps from its App Store amid political pressure.
- Applied Materials (AMAT): warned new U.S. export rules could cut revenue by $110 million in Q4 and $600 million in fiscal 2026.
Energy markets also remained volatile. Brent crude rose 0.8% to $64.61 and WTI gained 0.9% to $61.00, though both benchmarks were still down nearly 8% for the week on expectations of higher OPEC+ output.