U.S. stock futures showed little change on Monday evening after Wall Street closed sharply higher, supported by easing concerns over regional banks and growing optimism that the U.S. government shutdown could end this week a development that boosted investor sentiment.
Futures tied to the S&P 500, Nasdaq 100, and Dow Jones were mostly steady following a strong trading session in which the major indexes posted notable gains. The S&P 500 and Dow Jones both rose by 1.1%, while the Nasdaq Composite jumped 1.4%, driven by strong performances from major tech stocks such as Apple and NVIDIA.
Investors welcomed signs of resilience in the financial sector, along with upbeat remarks from a White House economic adviser, which raised expectations that the partial government shutdown might soon be resolved. Kevin Hassett, an economic adviser to the White House, stated that the shutdown “is likely to end this week,” boosting risk appetite after weeks of political gridlock that had eroded confidence and delayed key economic data releases.
In the banking sector, sentiment improved as recent fears surrounding the performance of smaller regional banks eased. Stronger than expected results from Zions Bancorporation helped calm worries about the stability of U.S. regional banks. The bank had previously disclosed a $50 million write off related to loans under fraud investigation and increased its credit loss provisions. Its shares rose more than 5% during the session and continued to gain after hours.
At the same time, investors are preparing for a busy week of corporate earnings reports, which are expected to have a significant impact on market performance in the coming period. Netflix is set to release its earnings on Tuesday, followed by Tesla on Wednesday. Other major companies scheduled to report this week include Ford, GE Aerospace, Coca Cola, Philip Morris, RTX, General Motors, Lockheed Martin, and Texas Instruments.
Despite the overall positive sentiment, caution remains in the markets as the release of key economic data continues to be delayed most notably the Consumer Price Index (CPI) report, which was postponed due to the government shutdown and is now expected on Friday.
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