Wall Street Futures Steady Ahead of Jobs Data and Shutdown Fears

U.S. stock index futures traded around the flatline early Thursday as investors awaited weekly jobless claims and GDP figures for cues on the Federal Reserve’s next steps, while political gridlock in Washington fueled concerns of a potential government shutdown.

At 05:55 ET (09:55 GMT):

• Dow Jones Futures rose 65 points, or 0.1%
• S&P 500 Futures slipped 6 points, or 0.1%
• Nasdaq 100 Futures dropped 28 points, or 0.1%

The muted performance follows a second straight day of declines on Wall Street, with technology stocks leading losses as stretched valuations and Fed uncertainty weighed on sentiment.

Fed Path Remains Unclear

Markets are digesting Fed Chair Jerome Powell’s warning earlier this week that there is “no risk-free path” for policy, given the dual risks of sticky inflation and a cooling labor market. The comments came after last week’s 25-basis point rate cut, which left traders uncertain about how many reductions the Fed will implement this year.

Investors will be watching closely for weekly jobless claims, with estimates at around 230,000, alongside the final reading of Q2 GDP. On Friday, the core PCE price index — the Fed’s preferred inflation gauge — will take center stage.

Government Shutdown Looms

Political risk has re-emerged, with lawmakers deadlocked over funding measures. The White House budget office has instructed agencies to prepare layoff plans in case of a partial shutdown starting next week. Markets fear the impasse could weigh further on confidence if it triggers mass layoffs across federal agencies.

Corporate Earnings in Focus

• Accenture (NYSE:ACN) is set to report before the bell, with investors looking for commentary on how AI consulting services are shaping growth amid economic headwinds.
• Jabil Circuit (NYSE:JBL), a key Apple supplier, also reports. Its stock has surged 57% this year, reflecting optimism around AI-driven data center demand.
• Intel (NASDAQ:INTC) shares rose after reports the company approached Apple (NASDAQ:AAPL) regarding a potential investment, following Nvidia’s recent $5 billion injection into the struggling chipmaker.