U.S. equity futures edged higher early Wednesday, buoyed by optimism that the House of Representatives will soon approve a funding bill to reopen the federal government after more than 40 days of closure. Republican leaders expressed confidence the measure will pass following its earlier approval by the Senate, marking what could be the end of the longest shutdown in U.S. history.
If the bill is enacted, it will unlock a wave of delayed economic data critical for Federal Reserve policymakers, who remain divided on future rate decisions. Investors are also turning their attention to key corporate updates from Cisco Systems (NASDAQ: CSCO) and Chevron (NYSE:CVX), both of which could influence market sentiment later in the week.
U.S. Futures Tick Higher
At 02:39 ET, Dow futures rose 78 points (+0.2%), S&P 500 futures climbed 25 points (+0.4%), and Nasdaq 100 futures advanced 170 points (+0.7%).
Wall Street finished Tuesday on a mixed note as cautious sentiment lingered. A revenue guidance cut from CoreWeave weighed on AI-related stocks, while ADP’s employment data hinted at a slowdown in labor market momentum.
Nevertheless, optimism remains. Analysts at Vital Knowledge observed that investors continue to “stay invested” in anticipation of a potential year-end rally.
Congress Nears Vote to Reopen Government
The House is expected to vote later today on a bipartisan agreement that would fund most U.S. federal agencies through January 30. Confidence in a resolution grew earlier this week after the Senate passed the legislation with backing from eight Democrats, ending a prolonged stalemate with President Donald Trump’s Republican Party.
If approved, Trump is expected to sign the measure swiftly. Reopening the government would allow the release of key macroeconomic indicators — including the monthly jobs report — that have been postponed during the shutdown. Such data will play a crucial role in shaping expectations for future monetary policy.
Fed Debate Over December Rate Decision
The Wall Street Journal reported that Federal Reserve officials remain split ahead of the December policy meeting on whether to lower interest rates again, following two consecutive 25-basis-point cuts in September and October.
At the heart of the debate are concerns over employment and inflation. Some Fed members argue that deeper cuts could help revive job creation and investment, while others caution that easing too aggressively risks reigniting inflationary pressures. With a lack of recent data due to the shutdown, consensus within the central bank remains elusive, the WSJ noted.
Cisco Earnings in Spotlight
Cisco Systems will report earnings after the closing bell, offering investors an update on how AI-related investments are shaping its growth. CEO Chuck Robbins said in August that AI infrastructure orders “had surpassed $800 million in Cisco’s fiscal fourth quarter,” lifting full-year totals “to more than $2 billion.”
He also highlighted that the “sovereign AI opportunity” will accelerate in the second half of fiscal 2026, positioning Cisco as a “core system provider for these significant AI training and inference cluster build outs […] integral to their development and eventual hyperscaling.”
Consensus estimates from Bloomberg call for adjusted earnings of $0.98 per share on revenue of $14.77 billion.
Chevron Investor Day Set to Outline Post-Hess Strategy
Oil giant Chevron (NYSE:CVX) is also under the spotlight as it holds its Investor Day in New York, where CEO Mike Wirth is expected to outline the company’s next growth phase following its $55 billion acquisition of Hess earlier this year — one of the largest industry deals in recent memory.
The transaction includes Hess’s 30% stake in the ExxonMobil-CNOOC consortium operating the prolific Stabroek offshore block in Guyana, which has yielded discoveries exceeding 11 billion barrels of oil. Analysts estimate total recoverable resources at roughly 20 billion barrels, reinforcing the strategic importance of the acquisition.
“We continue to believe Chevron paid a full price for Hess,” analysts at Wolfe Research wrote. They added that “addressing this and a relatively mature shale portfolio in acquired assets will be key issues at the upcoming Investor Day.”
Analysts also expect questions about Chevron’s Kazakhstan operations, which could contribute around 18% of the company’s free cash flow in 2025 and approximately 20% between 2026 and 2030.
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