S&P 500, Nasdaq Brace For Cautious Open After Shutdown Crisis Drama As Traders Eye Powell's Speech, Economic Data (UPDATED)

Editor’s note: This story has been updated to reflect the release times for economic data Monday in U.S. eastern time.

The U.S. stock market is set to start the week on a negative note, as futures on major indices exhibit slight losses in the premarket session.

Following a narrow avoidance of a government shutdown by the U.S. Congress, investors are now turning their attention to a barrage of economic data releases and a series of speeches scheduled by Federal Reserve officials.

The U.S. Congress narrowly averted a government shutdown, putting investors back to center their focus to a flurry of economic data and a series of speeches by Federal Reserve officials.

Over the weekend, Congress passed a stopgap bill just before the midnight deadline on Saturday, ensuring federal agencies continue to be funded. The resolution eased concerns over a government shutdown that could have had broader market implications.

On the economic front, fresh data on manufacturing activity and construction spending is set to be released today, providing insight into the health of the U.S. economy. 

Federal Reserve Chair Jerome Powell is scheduled to speak at 11:00 ET during a roundtable discussion with small business owners. Philadelphia Fed President Patrick Hasker and Cleveland Fed President Loretta Mester are also slated to make remarks throughout the day.

Monday Futures (as of 8:30 ET)

Economic Calendar Today

The SPDR S&P 500 ETF Trust (ARCA: SPY) was last up 0.05% at $427.70, while the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) was up 0.26% at $359.19, according to data from Benzinga Pro.

In the pre-market, the Energy Select Sector SPDR Fund (NYSE:XLE) is leading the pack among S&P 500 sectors, displaying a 0.2% gain.

Conversely, the laggards include the Materials Select Sector SPDR Fund (NYSE:XLB) and the Industrials Select Sector SPDR Fund (NYSE:XLI), both projected to kick off with a 0.3% decline.

Stock Movers In The Premarket:

• Coinbase Global Inc. (NASDAQ:COIN) was up over 5%, as Bitcoin (CRYPTO: BTC) soared to $28,315.
• Insulet Corp. (NYSE:PODD) was 4% higher in the premarket following an upgrade by Jefferies analysts from “Hold” to “Buy.”
• Danaher Corp. (NYSE:DHR) experienced a significant decline of over 10%, approaching lows from 2023. This drop comes in response to the recent spin-off of Veralto and a reduction in the target price by Leerink Partners, downgrading it from $290 to $230.
• Datadog Inc. (NASDAQ:DDOG) rose 2.5% after Piper Sandler upgraded the company from Neutral to Overweight.

FX, Bonds and Commodities:

The dollar rose, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), up 0.4%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.4% lower to 1.0530.

Treasury yields were sharply higher, with the 10-year yield up by 7 basis points to 4.64% and the thirty-year yield up by 6 basis points to 4.76%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) is expected to open 1.3% lower. 

Crude oil rose 0.5%, with a barrel of WTI-grade crude trading at $90.

European equity indices were marginally negative as of early afternoon trading in London.

Gold edged 0.7% down to $1,834/oz, while silver fell 1% to $21.60.

Staff writer Piero Cingari updated this report ahead of New York open on Monday.