US pre-open: Futures flat as investors eye Washington gridlock

(Sharecast News) - Wall Street futures were little changed ahead of the bell on Tuesday as traders continued to monitor events in Washington. As of 1250 BST, Dow Jones futures were up 0.06%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.08% and 0.05% softer, respectively.

The Dow closed 66.27 points higher on Monday, extending gains recorded in the previous session, as the looming risk of a possible government shutdown was offset by news of Nvidia's partnership with OpenAI.

Investors continued to keep a close eye on Washington ahead of the bell on Tuesday, with the risk of a US government shutdown rising ahead of a 30 September deadline. The Senate last week rejected proposals from both parties to temporarily fund federal operations, raising concerns over a potential lapse in government services.

Trade Nation's David Morrison said: "At the same time, there is a degree of uncertainty politically as Congress is still unable to secure an agreement to fund the government. If an agreement can't be reached, then the result will be a government shutdown. Historically, shutdowns have had limited impact on markets. But this time could be different, so investors are hoping for resolution before the month-end."

Separately, hopes for a high-level meeting between Donald Trump and Chinese President Xi Jinping this autumn appeared to fade, after US Ambassador to China David Perdue said the summit was more likely to take place next year.

On the macro front, preliminary readings of S&P Global's September manufacturing, services and composite PMIs will be released at 1445 BST, while the Richmond Fed's September manufacturing index will follow at 1500 BST.

Also likely to draw an amount of investor attention was a speech from Federal Reserve chairman Jerome Powell at 1735 BST.

No major corporate earnings were slated for publication on Tuesday.

Reporting by Iain Gilbert at Sharecast.com