US Stock Futures Fluctuate, Oil Extends Losses: Markets Wrap

(Bloomberg) — Asian markets opened on a subdued note after a lackluster Wall Street session, as investors stayed cautious with limited economic data clouding the outlook for Federal Reserve policy.

Contracts for the S&P 500 and the Nasdaq 100 index fluctuated as the effort to end the US government shutdown progressed. The underlying gauges were largely unchanged Wednesday, with megacap tech stocks falling. Gold and copper advanced on Fed rate-cut bets. Oil extended its drop after slumping the most since June as a key market gauge flashed weakness and OPEC said crude supplies surpassed demand sooner than anticipated.

Investor focus is on the yen after Japanese Finance Minister Satsuki Katayama issued a fresh warning on currency movements. The yen hovered around the key threshold of 155 per dollar, inching closer to levels where authorities last intervened in markets.

With US earnings season nearing completion, markets are shifting focus to the Fed and the outlook for potential interest-rate cuts. The absence of key indicators — such as unemployment figures and October’s consumer price index — has fueled uncertainty around monetary policy, with the White House confirming those reports are unlikely to be released due to the shutdown.

“While the markets are pricing the end of the government shutdown, there is an even bigger mountain ahead of us, and that is the resumption of all of the economic data that we have missed,” said Michael Landsberg at Landsberg Bennett Private Wealth Management. “As the fog lifts, we will see if market positioning has been correct and it is still clear sailing or if there is a big repricing necessary.”

The S&P 500 edged up 0.1%, lifted in part by a 9% surge in Advanced Micro Devices Inc. shares. The Nvidia Corp. rival in AI chips projected accelerating sales growth over the next five years, fueled by robust demand for its data center products.

Investors are also paying attention to the progress in ending the longest ever US government shutdown, with the House of Representatives voting on a bill Wednesday night.

House Speaker Mike Johnson said he believes the legislation, a hard-fought compromise forged in the Senate and blessed by President Donald Trump, will pass quickly. But he’ll have to keep his fractious party in line in the face of stiff opposition from House Democrats whose leaders are urging them to vote against the legislation.

Trump is expected to sign the bill to help reopen the government.

With the government shutdown delaying key economic data, the real challenge isn’t the short-term drag on growth — it’s the increasing difficulty for investors and the Fed to gauge the economic outlook, noted Seema Shah at Principal Asset Management.

“As data releases resume, the case for a Fed rate cut in December should re-emerge, reinforcing a risk-on backdrop,” she said. “This environment favors US equities, particularly big tech and cyclicals poised to benefit from a more accommodative Fed stance.”

Still, Boston Fed President Susan Collins said she favored holding rates steady amid still-strong growth that could slow or stall progress on cooling inflation.

The Boston Fed chief, who votes on policy this year, said last month’s rate cut — the second in a row — was “prudent” in order to support a labor market where hiring has weakened. She said the Fed’s policy rate, currently in a range of 3.75-4%, remains “mildly restrictive,” which is appropriate given that inflation remains above the Fed’s 2% target.

Corporate News:

Cisco Systems Inc. shares gained in late trading after the network-equipment giant boosted its 2026 forecast, showing progress in its effort to capture more artificial intelligence spending. Toyota Motor Corp. confirmed it will plow as much as $10 billion into the US over the next five years to boost its local operations. Anthropic PBC plans to spend $50 billion to build custom data centers for artificial intelligence work in several US locations, including Texas and New York, the latest expensive pledge for infrastructure to support the AI boom. Volkswagen AG and Rivian Automotive Inc. have ambitions of selling the electric vehicle technology they’re developing together to other carmakers in the future. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 10:10 a.m. Tokyo time Japan’s Topix rose 0.8% Australia’s S&P/ASX 200 fell 0.7% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1581 The Japanese yen fell 0.1% to 154.97 per dollar The offshore yuan was unchanged at 7.1127 per dollar Cryptocurrencies

Bitcoin rose 0.2% to $102,124.07 Ether rose 0.4% to $3,435.77 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.09% Japan’s 10-year yield was unchanged at 1.685% Australia’s 10-year yield advanced six basis points to 4.44% Commodities

West Texas Intermediate crude fell 0.6% to $58.13 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

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