Key Points
- U.S. stock futures are slightly higher after a down day on Thursday. The ongoing U.S. government shutdown is the biggest worry for investors.
- The shutdown is delaying key economic data, including the inflation report, which complicates the Fed’s job.
- Strong earnings from companies like Applied Digital show the AI boom is still going strong.
- Gold prices fell below $4,000 after news of a potential Israel-Hamas ceasefire.
U.S. stock futures ticked up on Friday as investors looked for direction in a market that’s being pulled in two directions: the ongoing euphoria over artificial intelligence and growing worries about a government shutdown that is now more than a week old.
At 8:29 AM (ET), the U.S. stock indices are showing a slight dip, with the S&P 500 at 6,735.12 USD, reflecting a minor decline of 0.28%. The tech-heavy Nasdaq 100 is at 25,098.18 USD, also seeing a small decrease of 0.15%. The Dow 30 is experiencing the most significant drop among the three, standing at 46,358.43 USD and down 0.52%.
The main Wall Street indexes fell on Thursday as the reality of the shutdown began to sink in. The biggest problem for investors is that the shutdown is delaying the release of key economic data, including next week’s crucial inflation report. Without this data, it’s much harder for the Federal Reserve to make decisions about interest rates, a key driver of the market.
While the market is still betting heavily on a Fed rate cut, the lack of official data is making the future “murky.” For now, investors will have to rely on secondary sources, like a consumer sentiment survey from the University of Michigan that is due out later today.
In company news, there were a few bright spots. Data center company Applied Digital saw its stock surge over 22% after reporting much better-than-expected revenue, a clear sign that the AI boom is still in full swing. Jeans maker Levi Strauss also raised its full-year forecast after a strong quarter.
Meanwhile, in the commodity markets, gold prices steadied after falling below the $4,000 mark. The precious metal, which hit an all-time high this week, took a hit after news of a potential ceasefire between Israel and Hamas eased some geopolitical tensions. Oil prices also fell on the news.
