U.S. stock futures traded lower on Tuesday as investors digested developments in Washington, where the Senate approved a bill to reopen the federal government, potentially ending the longest shutdown in U.S. history. Meanwhile, AI cloud company CoreWeave (NASDAQ:CRWV) trimmed its full-year revenue outlook, and SoftBank Group (USOTC:SFTBY) delivered a major profit beat, supported by strong gains from its artificial intelligence investments.
U.S. Futures Dip as Shutdown Nears Resolution
Stock futures in the U.S. were mostly flat to lower early Tuesday as markets weighed the economic and political implications of the Senate’s vote to restore federal funding.
At 02:42 ET, Dow futures traded flat, while S&P 500 futures slipped 0.1% (down 7 points) and Nasdaq 100 futures fell 0.2% (down 42 points).
Monday’s Wall Street session ended higher, lifted by optimism that lawmakers were closing in on a bipartisan deal to reopen the government after weeks of stalemate.
Analysts at Vital Knowledge noted that market sentiment toward the AI sector remains upbeat thanks to “bullish” expectations for upcoming earnings from key tech names such as Nvidia (NASDAQ:NVDA).
However, caution lingers around the Federal Reserve’s next moves, after a Fed official suggested Monday that “the room for additional rate cuts is now limited.”
Senate Moves to End Record-Long Government Shutdown
The U.S. Senate voted late Monday to advance a spending bill to the House of Representatives, marking a key step toward ending the record-length shutdown after eight Democrats broke ranks to support the measure.
Republicans, who currently hold majorities in both chambers, are expected to pass the bill with White House backing. The package provides funding through January 30, sets aside one year of appropriations for the Agriculture Department, the legislative branch, and military construction, and reinstates federal employees affected by layoffs.
Some Democrats criticized their colleagues who voted for the deal, arguing it lacked guarantees on healthcare protections that could affect millions of Americans. GOP leaders have pledged to bring that issue to a vote by mid-December.
Party divisions deepened as Democrats accused President Donald Trump of trying to “deny food assistance and disrupt air travel” to pressure Congress into negotiations. Administration officials countered that the spending freeze was part of an effort to “cut costs and ensure flight safety.”
CoreWeave Lowers 2025 Revenue Forecast After Data Center Delay
CoreWeave shares fell in after-hours trading after the Nvidia-backed AI infrastructure provider announced a delay with a third-party data center partner, prompting a revision to its full-year forecast.
The company now expects fiscal 2025 revenue between $5.05 billion and $5.15 billion, down from its previous range of $5.15 billion to $5.35 billion. Market consensus from LSEG data, cited by Reuters, had projected about $5.29 billion.
Despite the guidance cut, CoreWeave reported a better-than-expected third-quarter revenue of $1.36 billion, reflecting continued strength in AI cloud demand. Its adjusted operating income margin narrowed to 16%, from 21% a year earlier.
CFO Nitin Agrawal reiterated the company’s commitment to expanding its infrastructure footprint, noting that capital spending is expected to rise to between $12 billion and $14 billion in 2025.
“We remain focused on scaling our operations to meet accelerating demand,” Agrawal said, highlighting ongoing collaborations with OpenAI and Meta Platforms.
SoftBank Reports Big Profit Beat, Confirms Nvidia Stake Sale
SoftBank Group Corp. reported fiscal second-quarter earnings that far surpassed expectations, buoyed by strong returns from its Vision Funds and exposure to artificial intelligence.
The Tokyo-based conglomerate posted a net profit of ¥2.502 trillion ($16.3 billion) for the July–September quarter, exceeding Bloomberg’s estimate of ¥418.23 billion and more than doubling last year’s ¥1.179 trillion result.
The company confirmed it sold its entire 32.1 million-share stake in Nvidia in October for $5.83 billion, though the transaction was not reflected in second-quarter results, and no reason for the sale was disclosed.
China Plans to Restrict Rare Earth Exports to U.S. Military – WSJ
According to the Wall Street Journal, China is preparing a new “validated end-user” system to limit rare earth exports to companies linked to the U.S. military, while expediting approvals for civilian firms.
The move aligns with President Xi Jinping’s pledge to President Donald Trump to resume rare earth shipments to the U.S., though it could further complicate procurement for American defense contractors.
Rare earth elements, essential in electronics, renewable energy, and defense manufacturing, remain a strategic tool in China’s ongoing trade standoff with the U.S., where Beijing maintains a dominant global supply position.