Wall Street was bracing for a downturn on Friday, with futures signaling a rocky open as concerns over a potential government shutdown intensified, according to the Associated Press. The House’s overwhelming rejection of President-elect Donald Trump’s funding plan brought the nation closer to a pre-Christmas budget crisis.
Ahead of the opening bell, futures for the S&P 500 dropped 1%, while Dow Jones Industrial Average futures slipped 0.6%.
Lawmakers fell short of the two-thirds majority needed to pass the proposal before Friday’s midnight deadline. Despite the setback, House Speaker Mike Johnson expressed determination to rally Republicans and craft a new plan to avert the shutdown.
The defeat marked a significant blow for Trump and ally Elon Musk, who had strongly opposed Johnson’s earlier bipartisan compromise — a deal that Republicans and Democrats had reached to stave off a holiday government closure.
Thursday night’s impasse offers a glimpse of potential political turmoil as Trump prepares to return to the White House with GOP control of Congress. During his first term, Trump presided over the longest government shutdown in U.S. history, which began during the 2018 holiday season.
Meanwhile, in premarket trading, FedEx shares surged 9% following stronger-than-expected second-quarter profits and news of plans to spin off its freight division into a standalone public company.
Conversely, Nike shares fell 4.2% after the company issued lower guidance for the current quarter, and U.S. Steel dropped 7% on a negative fourth-quarter preannouncement.
Investors are also keeping an eye on U.S. personal spending data for November, expected later in the day.
