Stock futures are little changed after a record-setting week as government shutdown continues: Live updates

Stock futures were largely flat Sunday night despite an ongoing U.S. government shutdown, following a week where major indices like the S&P 500 and Nasdaq Composite rallied to record highs. The shutdown has delayed key economic data, including the September jobs report, yet analysts such as Fundstrat's Tom Lee dismiss it as a temporary 'sidebar' issue, maintaining a bullish outlook for the S&P 500 to reach 7,000 by year-end and advising investors to 'buy the dip.' Federal Reserve officials, including Chair Jerome Powell, are still slated to speak this week, providing potential market guidance amidst the data blackout.

Analysis

Stock futures were little changed Sunday night as a U.S. government shutdown continued following a week in which Wall Street rallied to record highs. Dow Jones Industrial Average futures ticked 37 points higher, or 0.1%. S&P 500 futures gained 0.1% along with Nasdaq-100 futures. The S&P 500 and Nasdaq Composite are coming off their fourth weekly advance in five weeks, rising 1.1% and 1.3%, respectively. The Dow rose for the third time in four weeks, advancing 1.1%. Investors shrugged off worries about the shutdown after lawmakers once again failed to reach a deal on funding to keep the government open. The shutdown delayed the release of key economic data — including the September jobs report -- which was originally due Friday. "Nevertheless, we think this is a 'sidebar' issue and probabilities heavily favor stocks remaining strong from October to December this year. In fact, we see S&P 500 reaching at least 7,000 by year-end — and maybe higher," wrote Tom Lee, head of research at Fundstrat. "We would urge looking through the messiness of the shutdown, and even the lack of data. If stocks are particularly weak, I would use this to 'buy the dip,'" he said. Despite the data blackout, several Federal Reserve officials are slated to speak this week, including Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. Despite an ongoing U.S. government shutdown, market sentiment remains overtly bullish, with stock futures showing minimal change after a week of significant gains. The S&P 500 and Nasdaq Composite advanced 1.1% and 1.3% respectively, marking their fourth weekly rise in five weeks, indicating investors are largely shrugging off the political impasse in Washington. A key consequence of the shutdown is the delay of critical economic releases, including the September jobs report, creating an information vacuum for market participants. However, influential analysts like Fundstrat's Tom Lee are framing the shutdown as a transient "sidebar" issue, maintaining a high-conviction forecast for the S&P 500 to reach 7,000 by year-end and advising investors to view any resulting weakness as a buying opportunity. In the absence of economic data, speeches from Federal Reserve officials, including Chair Jerome Powell, will be the primary focus this week, with their commentary likely to have an outsized impact on market direction.

Key Decisions for Investors

• Investors should consider the current political noise as a potential buying opportunity, as strong underlying market momentum and bullish analyst sentiment suggest using any shutdown-related dips to add to equity positions.
• Pay heightened attention to upcoming speeches from Federal Reserve officials, as their commentary on monetary policy will be a primary market catalyst in the absence of key economic data like the jobs report.
• Given the strong performance and positive sentiment for the S&P 500 and Nasdaq, maintaining exposure to broad-market ETFs (such as SPY and QQQ) appears warranted, especially in light of the cited analyst target for the S&P 500 to reach 7,000.