U.S. equity futures moved lower on Tuesday as investors focused on a tense standoff in Washington over federal funding, with a potential government shutdown just hours away. A meeting between Republican and Democratic leaders and President Donald Trump on Monday ended without resolution, amplifying uncertainty. The risk of a shutdown has helped push gold prices to record levels and raised concerns that key economic data releases could be delayed. Meanwhile, Trump announced a new round of tariffs, and Nike (NYSE:NKE) is set to release quarterly results after market close.
Futures Dip
By 03:33 ET, Dow futures were down 79 points (0.2%), S&P 500 futures fell 10 points (0.1%), and Nasdaq 100 futures declined 37 points (0.1%).
The main U.S. indexes had advanced Monday, supported by a slight drop in Treasury yields, which fell 1–3 basis points across the curve. Investor optimism around artificial intelligence and bets on additional Federal Reserve rate cuts helped temper concerns over the political impasse.
In individual stocks, Lam Research rose following a Deutsche Bank upgrade, while AppLovin reached an all-time high after Morgan Stanley raised its outlook.
Shutdown Concerns
Congress faces a looming deadline to pass a short-term funding measure. The House recently cleared a Republican-backed bill, but Senate approval remains uncertain. Republicans hold 53 seats in the Senate but need 60 votes for passage.
After Monday’s meeting with President Trump, both parties blamed each other. Republicans accused Democrats of holding the government “hostage,” while Democrats, pushing for an extension of health care subsidies in exchange for support, warned that failing to reach an agreement could jeopardize coverage for millions.
Vice President JD Vance commented that he believes the government is “heading for a shutdown.” Analysts caution that a shutdown could postpone the release of Friday’s critical nonfarm payrolls data. Investors will, however, see job openings data later Tuesday, offering a snapshot of labor demand.
Gold Hits Fresh Records
Gold prices continued their upward trajectory amid the uncertainty, reflecting concerns about a possible economic slowdown. Spot gold climbed 0.5% to $3,851.46 per ounce by 03:37 ET, while futures rose 0.7% to $3,880.70. The metal has gained roughly 17% during the third quarter. Silver and platinum retreated slightly, and copper prices fell.
Trump Announces Tariffs
Adding to market uncertainty, President Trump announced new tariffs on lumber, furniture, and kitchen fittings to encourage domestic production. A Monday proclamation set a 10% tariff on softwood lumber and timber, a 25% tariff on kitchen cabinets and vanities, and a 25% tariff on upholstered wooden products, effective October 14. These tariffs follow a Commerce Department investigation into imports earlier this year.
Nike Earnings in Focus
Nike will report fiscal first-quarter results after the close, with investors watching for progress under CEO Elliott Hill, who returned in October to lead a turnaround. Revenue is expected to decline in the mid-single digits, as Hill invests in running shoes and sneakers to boost demand.
CFO Matthew Friend previously noted that it may take “several quarters” to clear older inventory, possibly through discounting, and Nike plans to reduce its reliance on Chinese production to mitigate tariff exposure. Yet optimism is emerging: JD Sports (LSE:JD.), a key U.K. retail partner, said Nike is doing “all the right things in terms of resetting” its operations.
Applovin Corporation stock price
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