Government Shutdown Worries May Weigh On Wall Street

(RTTNews) - After moving mostly higher over the two previous sessions, stocks may give back ground in early trading on Tuesday. The major index futures are currently pointing to a slightly lower open for the markets, with the S&P 500 futures down by 0.1 percent.

Traders may look to cash in on the recent strength in the markets amid concerns about the possibility of a government shutdown at the end of the day.

Lawmakers must pass legislation funding the government by a deadline of 12:01 a.m. ET on Wednesday or face a shutdown.

Democrats have demanded that a temporary funding bill include an extension of enhanced Obamacare tax credits, while Republicans argue the issue should be debated after a funding bill is passed.

After a meeting between President Donald Trump and Congressional leaders on Monday, Vice President JD Vance said he thinks "we're headed to a shutdown because the Democrats won't do the right thing."

"Relations between the Democrats and Republicans are frostier than an Alaska morning, so markets are not confident on the prospects of agreeing a deal before midnight tonight," said AJ Bell investment director Russ Mould.

He added, "One of the biggest short-term concerns for markets is the impact this would have on the release of government data - particularly the jobs number due on Friday - without which the Federal Reserve might not feel as confident about cutting interest rates."

Any selling pressure is likely to be somewhat subdued, however, as lawmakers often reach a last-minute agreement to avoid a shutdown.

Not long after the start of trading, the Conference Board is scheduled to release its report on consumer confidence in the month of September. The consumer confidence index is expected to slip to 96.0 in September after dipping to 97.4 in August.

The Labor Department is also due to release its report on job openings in the month of August. Job openings are expected to decrease to 7.100 million in August after falling to 7.181 million in July.

Stocks moved mostly higher during trading on Monday, adding to the gains posted during last Friday's session. The major averages all moved to the upside on the day, although buying interest was somewhat subdued.

The major averages finished the day in positive territory but off their early highs. The Nasdaq climbed 107.09 points or 0.5 percent to 22,591.15, the S&P 500 rose 17.51 points or 0.3 percent to 6,661.21 and the Dow inched up 68.78 points or 0.2 percent to 46,316.07.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.3 percent, while China's Shanghai Composite Index rose by 0.5 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.3 percent, the U.K.'s FTSE 100 Index is up by 0.1 percent and the German DAX Index is up by 0.2 percent.

In commodities trading, crude oil futures are slumping $1.24 to $62.21 a barrel after plunging $2.27 to $63.45 a barrel on Monday. Meanwhile, after surging $46.20 to $3,855.20 an ounce in the previous session, gold futures are slipping $13.30 to $3,841.90 an ounce.

On the currency front, the U.S. dollar is trading at 147.97 yen compared to the 148.58 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1734 compared to yesterday's $1.1725.