Dow futures remained in flat territory on Tuesday, after Wall Street enjoyed a strong rally that pushed major indexes to record highs.
Futures for the Dow Jones Industrial Average were just 29 points up, reflecting a cautious mood after a week that had been driven by excitement over AI breakthroughs and the big AMD-OpenAI partnership.
Even with this neutrality, the market is still being lifted by optimism around AI and the upcoming earnings season.
That said, there’s some uncertainty in the mix as investors are keeping a close eye on the ongoing US government shutdown and delayed economic data, trying to gauge how these factors might steer the market next.
5 things to know before Wall Street opens today
1. The US government shutdown hit day seven on Tuesday, with no end in sight. The Senate couldn’t pass any funding bills; both Democratic and Republican proposals fell short, and neither side managed to get past the filibuster.
Right now, around 900,000 federal workers are furloughed, and another 700,000 are on the job without pay.
President Donald Trump warned that mass layoffs could be coming if the stalemate drags on. The shutdown really underscores how divided lawmakers are over things like federal spending, healthcare subsidies, and foreign aid.
2. Advanced Micro Devices (AMD) was up about 4% in pre-market trading on Tuesday, after announcing a multibillion-dollar partnership with OpenAI to supply AI chips.
Clarivate also had a strong start, jumping 5% after bringing Windbond Electronics Corporation onto its IPfolio platform.
On the flip side, Ford slipped almost 2% after a fire at a New York aluminum plant is expected to disrupt operations.
Meanwhile, Trilogy Metals stole the spotlight, with shares skyrocketing nearly 218% following a big US government investment in its Canadian mineral exploration projects.
3. The US government is looking at the possibility of selling parts of its $1.6 trillion student loan portfolio to private investors, Politico reports.
The idea is to ease fiscal pressures and bring in some revenue, but it’s raising questions about what it could mean for borrowers, like possible changes to loan terms or how loans are serviced.
The proposal is still under review, as officials try to figure out how to balance the government’s revenue needs with protecting students in the middle of ongoing debates over loan forgiveness and repayment policies.
4. Wall Street is sending mixed signals after last week’s big rally. The S&P 500 and Nasdaq both hit all-time closing highs, fueled by excitement over AI and strong earnings from tech heavyweights like AMD.
But Dow futures slipped a bit, down about 0.2%, suggesting some short-term profit-taking.
The S&P 500 is still in a solid uptrend, with healthy volume and momentum behind it, though some traders think valuations are getting a little stretched.
Investors are keeping a close eye on potential market swings, especially with the US government shutdown still in play and the Fed’s policy moves expected later this quarter.
5. On Tuesday, the global markets were a mixed bag, but overall leaned positive despite ongoing political uncertainties.
In Asia, shares mostly rose, with Japan’s Nikkei hitting new record highs on optimism around government spending under new leadership.
European markets were fairly steady as France’s CAC 40 edged up a bit amid political upheaval, while Germany’s DAX dipped slightly.
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