Stock Futures Rise Amid Hopes for End to Government Shutdown

NEW YORK, N.Y. — U.S. stock futures rose early Friday, suggesting that major indexes may finish a volatile week on a positive note. Hopes for a resolution to the government shutdown, which has lasted a record 38 days, drove the uptick in market sentiment.

Senate Majority Leader John Thune (R-S.D.) informed fellow Republicans during a private lunch that he would call a vote in the Senate on Friday. This move is expected to end the legislative standoff and allow a continuing resolution passed by the House to advance.

Despite widespread skepticism about artificial intelligence (AI) investments, which have been a major market driver, LPL Head of Equity Research Thomas Shipp noted that earnings expectations are still growing. However, he emphasized that concerns about the AI sector’s sustainability are valid. “Each dollar invested in AI raises the bar for expected payoff,” Shipp added.

As of 3 a.m. ET Thursday, futures for the Nasdaq 100, S&P 500, Dow, and Russell 2000 increased by 0.40%, 0.31%, 0.23%, and 0.51%, respectively. However, retail sentiment towards the S&P 500 exchange-traded fund (ETF) remained bearishly aligned, while sentiment for the Nasdaq 100 ETF showed signs of improvement.

The previous day, the Nasdaq fell by 1.9%, and the S&P 500 lost 1.1% as tech stocks faced renewed pressure over concerns of inflated AI valuations and weak job reports. Investors reacted cautiously as payroll processing firm Challenger, Gray & Christmas reported the highest job cuts for October since 2003.

In other financial developments, Datadog (DDOG) emerged as a strong performer, surging 23% after exceeding quarterly earnings expectations. Conversely, Bumble (BMBL) saw its shares plummet by 25% due to a significant decline in its user base.

Finally, President Donald Trump announced a new government deal that would allow Medicare to cover certain weight-loss drugs at reduced costs. This announcement affected shares of major pharmaceutical companies involved in this market.

The stock market continues to react sensitively to economic indicators and government policy changes as traders look for signs of direction amid ongoing uncertainties.