Stock were set to open in the red on Tuesday after strong gains the previous day on the prospective reopening of the U.S. government. Markets are now bracing for a rush of economic data.
Dow Jones Industrial Average futures were down 33 points, or 0.1%. S&P 500 futures were falling 0.2% and Nasdaq 100 futures were dropping 0.4%.
The Republican-led Senate late Monday passed a spending package to end the record-long government shutdown with support from some Democrats. It now moves to the House for a final vote as soon as Wednesday and then to President Donald Trump’s desk.
“If the shutdown ends as expected tomorrow, we’ll then get a huge backlog of US data releases over the next few weeks,” wrote Deutsche Bank analyst Jim Reid in a research note. “We could get the September jobs report pretty quickly, not least because the original release was meant to be on October 3, just a couple of days after the shutdown began. Early next week is realistic.”
While labor and inflation data for September will be published quickly, key reports for October and November may not be available before the Federal Reserve’s Dec. 9-10 policy-committee meeting. That could complicate the task of the central bank in deciding whether to continue cutting rates.
The yield on the benchmark 10-year Treasury note stood at 4.121% on Monday. The U.S. bond market will be closed for trading on Tuesday in observance of Veterans Day. It will reopen on Wednesday at 8 a.m. Eastern. The New York Stock Exchange and the Nasdaq Stock Market will be open for regular trading. Over-the-counter markets will also be open.
