U.S. stock futures were slightly higher Friday as traders appeared unfazed by the ongoing government shutdown, which has delayed the release of several critical economic reports. Investors are now focusing on private-sector indicators to gauge the health of the services sector, while corporate developments also impacted after-hours trading. Shares of Applied Materials (NASDAQ:AMAT) fell after the company warned that new U.S. export restrictions could weigh on revenue.
Futures Rise Despite Washington Impasse
Major U.S. index futures climbed Friday following Wall Street’s record-setting session, despite ongoing uncertainty from the government shutdown. Tech stocks were a major driver of the gains, fueled by optimism around artificial intelligence and strong momentum in semiconductor-related shares. Gains across broader indexes were limited as the shutdown extended into its third day.
S&P 500 futures were up 16 points, or 0.2%, Nasdaq 100 futures rose 68 points, or 0.3%, and Dow Jones futures advanced 101 points, or 0.2%, as of 03:49 ET.
Private Services Data Takes Center Stage
The government shutdown has prevented the release of the monthly nonfarm payrolls report, leaving investors to rely on the ISM non-manufacturing index for September. The index is expected to dip slightly to 51.8 from 52.0 in August but still signals growth, as readings above 50 denote expansion. Analysts suggest it could reveal the impact of U.S. tariffs on a sector representing a large portion of economic output.
“The Federal Reserve has been keeping close tabs on labor market figures, with policymakers mulling over a potential series of rate reductions to help boost hiring and investment — albeit at the risk of driving up inflationary pressures,” the report noted.
Applied Materials Flags Revenue Impact
Applied Materials disclosed that expanded U.S. export restrictions could reduce its revenue by roughly $110 million in Q4 and $600 million in fiscal 2026. The restrictions affect the shipment of certain products and services to specific clients in China.
The U.S. Department of Commerce recently expanded its blacklist to include majority-owned subsidiaries of listed firms to prevent circumvention of export rules through smaller affiliates. Applied Materials did not specify which products or customers would be impacted. Shares fell about 2.7% in after-hours trading.
Gold Holds Up on Fed Rate Speculation
Gold remained supported, heading for its seventh consecutive weekly gain as markets priced in potential additional Federal Reserve rate cuts and weighed the effects of the ongoing government shutdown. Spot gold rose 0.2% to $3,864.40 per ounce, while December futures gained 0.5% to $3,887.22/oz by 04:00 ET. Gold has surged roughly 47% year-to-date, buoyed by expectations of a low-rate environment.
Oil Set for Weekly Decline
Oil prices ticked higher Friday but remain on track for their steepest weekly fall since late June, driven by expectations that OPEC+ may increase output. Brent futures gained 1.1% to $64.78 per barrel, while U.S. WTI crude rose 1.1% to $61.16 per barrel. Both benchmarks had slipped nearly 2% in the prior session, with a weekly decline of around 8% expected.
“Sentiment remains cautious after reports earlier this week suggested that OPEC+ could raise production by as much as 500,000 barrels per day in November, triple the volume added this month,” analysts noted.
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