U.S. stock futures edged higher Friday, as investors appeared unfazed by ongoing uncertainty around a prolonged government shutdown, which has delayed the release of key economic indicators. Traders are now relying on private-sector data for insight into the services sector, while specific corporate news also influenced after-hours trading. Applied Materials (NASDAQ:AMAT) shares fell after the company warned that new U.S. export restrictions could hurt revenue.
Futures Climb Despite Shutdown Concerns
Futures for major U.S. indexes rose Friday following another session of record highs on Wall Street, even amid the continuing government shutdown and postponed payroll data. Technology shares led the gains, bolstered by optimism over artificial intelligence and strong momentum in chipmaker stocks. Overall, however, upward movement was tempered as the shutdown stretched into a third day.
S&P 500 futures were up 16 points, or 0.2%, Nasdaq 100 futures added 68 points, or 0.3%, and Dow Jones futures rose 101 points, or 0.2%, as of 03:49 ET.
Private Services Data in Focus
With the government shutdown preventing the publication of the crucial nonfarm payroll report, investors are turning to the ISM non-manufacturing index for September to gauge activity in the U.S. services sector. The reading, expected to dip slightly to 51.8 from 52.0 in August, still indicates expansion as readings above 50 signal growth. Analysts say the index may shed light on how U.S. tariffs are affecting a sector that represents a substantial portion of overall 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 notes.
Applied Materials Warns on Export Restrictions
Applied Materials revealed that newly expanded U.S. export controls could reduce revenue by around $110 million in Q4 of its current fiscal year and $600 million in fiscal 2026. The restrictions make it harder to ship certain products overseas and provide specific components and services to select clients in China.
The U.S. Department of Commerce recently widened its blacklist to include majority-owned subsidiaries of listed firms, aiming to prevent circumvention of export rules through smaller affiliates. Applied Materials did not specify which products or customers will be affected. Shares dropped roughly 2.7% in extended trading.
Gold Holds Ground on Fed Rate Outlook
Gold prices remained steady, poised for a seventh consecutive weekly gain as investors priced in the potential for additional Federal Reserve rate cuts amid concerns over the prolonged government shutdown. Spot gold rose 0.2% to $3,864.40 per ounce, while December futures increased 0.5% to $3,887.22/oz by 04:00 ET. The metal has surged roughly 47% so far this year, benefiting from expectations of a lower-rate environment.
Oil Poised for Weekly Loss
Oil prices moved higher Friday but are set for the steepest weekly decline since late June, amid expectations that OPEC+ could increase production further. Brent futures added 1.1% to $64.78 per barrel, while U.S. WTI crude gained 1.1% to $61.16 per barrel. Both benchmarks had fallen nearly 2% in the previous session, and market participants anticipate a near 8% drop for the week.
“Sentiment remains cautious after reports earlier this week suggested that OPEC+ could raise output by as much as 500,000 barrels per day in November, triple the increase added this month,” analysts noted.
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