Dow, S&P 500, Nasdaq Set to Open Up; Record Highs; Government Shutdown; Bitcoin Price Rises; Tesla, Nvidia, SoFi, Applied Materials and More Movers
Global investors are powering through the U.S. government shutdown, and the suspension of a key data release from the Bureau of Labor Statistics, as stocks extend their record-setting rally into early October.
The BLS was due to publish its September jobs report at 8:30 a.m. Eastern time, but the ongoing government shutdown will delay that release indefinitely.
Curiously, despite a weaker-than-expected reading for private job creation from payroll processing group ADP earlier this week, and data showing the weakest hiring intentions since 2009 by Challenger Gray, investors appear relatively sanguine with the lack of official figures from the BLS.
The CBOE Group’s VIX index, a benchmark volatility gauge, was 2.2% lower in overnight trading at 16.25.
Benchmark 10-year Treasury note yields, meanwhile, were little-changed from Thursday levels at 4.096%, while the U.S. dollar index slipped by a modest 0.08% against a basket of its global currency peers.
“Investors have settled into the view that the Fed will likely cut rates twice more this year and probably another 50 basis points in 2026,” said ING’s global head of markets Chris Turner.
“U.S. interest rate volatility is just not here at the moment,” he added. “And the delay of today’s US jobs report further postpones forming a clear view on the friction between sticky inflation and a softening labour market.”
That could put today’s reading of the services sector, expected at 10:00 a.m. Eastern time from the Institute for Supply Management, in sharp focus.
Analysts expect the report to show a modest decline in overall activity during the month of September, but remain just north of the 50-point mark that separates growth from contraction.
