Stock market today: Dow, S&P 500, Nasdaq futures sell off as government shutdown looms, Fed's preferred inflation gauge on deck

Published On Dec 20, 2024, 7:37 AM

US stock futures are seeing declines this morning as uncertainty increases around a potential government shutdown after the House rejected a spending bill. The market is also reacting to upcoming key inflation data, which could influence monetary policy, particularly after the Federal Reserve signaled it will cut interest rates more cautiously than expected. Major indices including the S&P 500 and Nasdaq are anticipated to open lower, reflecting concerns over economic policy and company-specific issues, particularly in the tech sector.

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Stock Forecasts

SPYView SPY chart on TradingView

Negative

The rejection of the spending bill increases uncertainty, which typically leads to stock sell-offs as investors seek to avoid risk. Additionally, the anticipated inflation data may not provide the reassurance needed for a rebound, leading to cautious trading in major tech stocks.

QQQView QQQ chart on TradingView

Negative

The decline in technology stocks, particularly those exposed to global supply chains and consumer sentiment, is evident. With the risks presented by government shutdown fears, these stocks may continue to see selling pressures.

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