By Piyush Shukla

Copyright indiatimes

TIL CreativesThe U.S. stock market futures showed mixed moves today as S&P 500 and Nasdaq rose on AI optimism, while the Dow struggled amid government shutdown worries.

The U.S. stock market is moving in different directions today. The S&P 500 and Nasdaq futures are gaining thanks to strong optimism in technology and artificial intelligence stocks. At the same time, the Dow Jones Industrial Average is lagging behind, weighed down by slower demand in traditional industries. With the U.S. government shutdown continuing, investors face a mix of opportunities and risks that could shape trading in the days ahead. The strength in the S&P 500 and Nasdaq is being driven largely by tech giants and AI-linked companies. Investors continue to pour money into firms like Nvidia, Microsoft, and Alphabet, believing that AI will remain a long-term growth engine. This trend has helped offset concerns about slower job growth and weakening consumer demand. In contrast, the Dow Jones is reflecting the pressure on cyclical sectors such as manufacturing, banking, and energy.Live Events Many of these companies are more sensitive to changes in government spending and consumer activity. With the shutdown delaying federal contracts and creating uncertainty, industrial stocks are finding it harder to attract buyers. The political deadlock in Washington is adding a fresh layer of volatility. Economists warn that if the shutdown stretches for weeks, it could dent consumer confidence and disrupt economic data releases that markets depend on. Without clear signals, the Federal Reserve may struggle to chart its policy path, leaving investors guessing about interest rate decisions. Despite these challenges, market analysts note that optimism has not completely disappeared. The rally in AI and digital innovation continues to provide momentum, and some investors believe the Fed may soften its stance if the economy shows further signs of slowing. This tug-of-war between optimism and caution is likely to keep Wall Street in a choppy but closely watched trading environment over the next several sessions.U.S. Stock market futures today S&P 500 futures gained, reflecting strong investor confidence in technology and AI stocks. Nasdaq futures rose higher, supported by optimism in semiconductor and cloud companies. Dow futures showed weaker movement, weighed down by industrial and financial sector concerns.The S&P 500 ETF (SPY) climbed to 668.45, marking a 0.36% increase, while the Nasdaq-focused QQQ rose to 603.25, up by 0.50%. These gains are being powered mainly by technology stocks, particularly those tied to artificial intelligence, cloud computing, and semiconductors. Tech leaders like Nvidia, Microsoft, and Alphabet are attracting heavy investor attention. Many analysts believe these companies will continue to see strong earnings growth, even if the broader economy slows. This optimism reflects the belief that AI and digital services are becoming essential drivers of business productivity and innovation. The AI boom is not just about short-term gains. Investors are betting that new applications in healthcare, finance, and industrial automation will fuel steady demand for advanced chips and software. As a result, the Nasdaq is benefiting the most, and the S&P 500 is also gaining traction due to its large tech weighting.Why is the Dow Jones struggling to keep up? Unlike the S&P 500 and Nasdaq, the Dow Jones Industrial Average is barely moving. The index rose only 0.11%, trading at 464.26. This reflects weakness in sectors like manufacturing, energy, and traditional blue-chip stocks. Industrial companies are facing slower demand forecasts, with some businesses seeing delays in government contracts due to the shutdown. This has created added uncertainty for sectors that rely on federal infrastructure projects or defense spending. Investors are more hesitant to put money into these companies until Washington resolves its funding standoff. Financial stocks within the Dow are also under pressure. Concerns about higher borrowing costs and slower consumer spending have weighed on bank shares. Meanwhile, energy stocks are seeing limited support as oil prices remain volatile, leaving the Dow without a strong driver to lift it higher.Top gainers today Nvidia (NVDA) – up 2.8%, driven by strong demand for AI chips and positive earnings outlook. Microsoft (MSFT) – up 1.9%, boosted by continued growth in cloud and AI services. Alphabet (GOOGL) – up 1.5%, as investors bet on AI-driven advertising and search innovations. Amazon (AMZN) – up 1.3%, supported by e-commerce growth and expanding cloud revenues. Meta Platforms (META) – up 1.1%, gaining on AI integration and improved ad spending.Top losers today Boeing (BA) – down 1.4%, affected by slower demand in commercial aircraft and supply chain concerns. Caterpillar (CAT) – down 1.2%, pressured by weak industrial demand and global construction slowdown. JP Morgan (JPM) – down 1.0%, as financial stocks face uncertainty from the government shutdown and market volatility. Exxon Mobil (XOM) – down 0.9%, with energy stocks reacting to oil price fluctuations and geopolitical risks. Dow Inc. (DOW) – down 0.8%, impacted by lower chemical demand and industrial sector caution. How is the government shutdown affecting Wall Street? The ongoing U.S. government shutdown is having a direct impact on financial markets. With federal agencies closed, key reports such as the nonfarm payrolls data may not be released on time. This creates a challenge for both investors and the Federal Reserve, who rely on this data to understand the health of the economy. If the shutdown continues, the effects could spill over into the real economy. Federal workers may face delayed paychecks, and this could reduce consumer spending. Companies with government contracts could also see cash flow issues, making investors cautious about putting money into industries tied to Washington funding. The longer the shutdown drags on, the greater the risk to market confidence. Many analysts believe the standoff in Congress could create more volatility in the coming weeks, especially if it disrupts economic data releases or leads to reduced consumer confidence. What does weak jobs data mean for the market? The latest ADP private payrolls report showed unexpected job losses in September. This was a surprise for investors and raised concerns that the labor market may be cooling faster than previously expected. A weaker job market often signals slower economic growth, which can weigh on corporate profits. However, there is a silver lining for Wall Street. If the labor market continues to show signs of weakness, the Federal Reserve may consider pausing its rate hikes. Some investors even believe the Fed could shift toward rate cuts in 2026, which would make borrowing cheaper and support stock valuations. For now, the jobs data adds to the uncertainty. Investors are waiting for more signals, including inflation numbers and Fed policy updates, before making big moves. But the mixed labor picture is keeping markets on edge and reinforcing the split between growth-focused tech stocks and struggling cyclical sectors. Why are gold and bonds rallying while stocks remain mixed? As investors face uncertainty from both the shutdown and jobs data, many are turning to safe-haven assets. Gold prices have surged to new record highs, as traders look for stability in the face of political and economic risks. U.S. Treasury yields have also moved lower, showing that investors are buying government bonds despite the shutdown. This may seem counterintuitive, but Treasuries are still viewed as the safest assets in times of stress. Lower yields can also ease financing costs for businesses and consumers over time. The dollar has remained steady against major currencies, while oil has seen sharp swings due to geopolitical tensions and supply questions. This mix of moves highlights how investors are balancing between risk assets like tech stocks and safer bets like gold and bonds.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onUS stock futures rise on AI optimismstock market todays&p 500 futuresnasdaq futuresdow jones newsai stocksus government shutdown impactwall street updatestock market rallygold prices record(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless