Stock futures remain steady despite ongoing government shutdown.
In a surprising turn of events, stock futures showed little movement on Sunday night, even as the U.S. government shutdown persisted. This comes after a remarkable week on Wall Street, where major indices hit record highs.
The Dow Jones Industrial Average futures ticked up by a modest 37 points, or 0.1%, while the S&P 500 and Nasdaq-100 futures followed suit with a 0.1% gain each.
The S&P 500 and Nasdaq Composite have been on a winning streak, advancing for the fourth week in five, with respective gains of 1.1% and 1.3%. The Dow, too, has been on an upward trajectory, rising for the third time in four weeks, with a 1.1% increase.
But here's where it gets controversial: investors seem unfazed by the government shutdown. Despite lawmakers' failure to reach an agreement on funding, which led to the shutdown, investors are not panicking.
"This is a sidebar issue," Tom Lee, head of research at Fundstrat, wrote. "Probabilities heavily favor stocks remaining strong from October to December. We see the S&P 500 reaching at least 7,000 by year-end, and potentially higher."
Lee encourages investors to look beyond the shutdown and the lack of economic data, suggesting that any weakness in the market could be an opportunity to 'buy the dip.'
And this is the part most people miss: despite the data blackout, several Federal Reserve officials are scheduled to speak this week. Fed Governor Stephen Miran will speak on Wednesday, followed by Chair Jerome Powell on Thursday.
So, what does this mean for the market? Will the Fed's insights provide further clarity, or will the shutdown continue to cast a shadow over Wall Street?
What's your take on this situation? Do you agree with Lee's optimistic outlook, or do you think the shutdown will have a more significant impact? Share your thoughts in the comments below!
