(RTTNews) – Stocks are likely to come under pressure in early trading on Wednesday, giving back ground after trending higher over the past few sessions. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.
The downward momentum on Wall Street comes after the U.S. government officially shot down early this morning after lawmakers failed to pass a temporary spending bill.
Democrats have demanded that any stop-gap funding bill include an extension of enhanced Obamacare tax credits, while Republicans have argued the issue should be debated after a funding bill is passed.
Worries about the economic impact of the shutdown may weigh on Wall Street, although traders may be more concerned that the shutdown delaying the release of crucial U.S. economic data.
The Labor Department had been scheduled to release its closely watched monthly jobs report on Friday, although the data is likely to be delayed due to the shutdown.
Traders are worried that the lack of official data on employment and potentially inflation could affect the Federal Reserve’s monetary policy decision this month.
The Fed may have to rely on other sources of data, including a report released by payroll processor ADP this morning showing an unexpected decrease by private sector employment in the month of September.
ADP said private sector employment fell by 32,000 jobs in September after dipping by a revised 3,000 jobs in August.
Economists had expected private sector employment to climb by 50,000 jobs compared to the addition of 54,000 jobs originally reported for the previous month.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of September. The ISM’s manufacturing PMI is expected to inch up to 49.0 in September from 48.7 in August, but a reading below 50 would still indicate contraction.
After moving mostly higher over the two previous sessions, stocks fluctuated over the course of the trading day on Tuesday. The major averages bounced back and forth across the unchanged line for much of the session before a late-day advance.
The upward move seen going into the end of the day helped the major averages close in positive territory. The S&P 500 climbed 27.25 points or 0.4 percent to 6,688.46, the Nasdaq rose 68.86 points or 0.3 percent to 22,660.01 and the Dow increased 81.82 points or 0.2 percent at 46,397.89.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday, with markets in Hong Kong and mainland China closed for holidays. Japan’s Nikkei 225 Index slid by 0.9 percent, while South Korea’s Kospi advanced by 0.9 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index is up by 0.6 percent, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.e percent.
In commodities trading, crude oil futures are falling $0.44 to $61.93 a barrel after tumbling $1.08 to $62.37 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,908.80, up $35.60 compared to the previous session’s close of $3,873.20. On Tuesday, gold climbed $18.
On the currency front, the U.S. dollar is trading at 146.81 yen compared to the 147.90 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1752 compared to yesterday’s $1.733.
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