U.S. stock futures fell early Wednesday as lawmakers failed to pass a funding bill, triggering a federal government shutdown, while hawkish comments from Federal Reserve officials further dampened investor sentiment.
As of 12:05 a.m. ET, S&P 500 futures were down 0.4% at 6,709.50, Nasdaq 100 futures fell 0.5% to 24,775.25, and Dow Jones futures slipped 0.4% to 46,501.0. The drop followed a strong Tuesday close, when tech optimism and AI momentum lifted Wall Street indices to near-record highs.
Shutdown Takes Effect as Funding Bill Fails in Senate
The Republican-backed short-term spending bill passed the House but was rejected in the Senate by a 55–45 vote, leading to a government shutdown at midnight. Democrats opposed the bill over cuts to healthcare subsidies.
Key services such as air traffic control and disaster relief are expected to be disrupted, with thousands of federal employees facing furloughs. The September nonfarm payrolls report may also be delayed. President Donald Trump warned of further federal layoffs if the impasse drags on.
Strong Quarter Ends Under Policy Pressure
Despite the shutdown, Wall Street posted a robust third quarter: the S&P 500 gained 7.8%, the Nasdaq rose 11.2%, and the Dow added 5.2%, all closing at record highs. However, renewed hawkish messaging from Fed officials has dampened expectations for further rate cuts this year, weighing on risk sentiment.