S&P 500, Nasdaq slip as US government shutdown looms

Market Sentiment - U.S. stock index futures declined as investors anticipated a significant labor market report and considered the risks associated with a potential government shutdown [1][2] - Investor sentiment has shifted towards risk aversion following recent equity gains, with analysts suggesting that the current shutdown could be more disruptive than previous ones due to the fragile economic environment [1][2] Economic Data Importance - The Federal Reserve's data-dependent approach has increased the significance of upcoming economic releases, with investors looking for favorable data to maintain rate-cut expectations and support the equity rally [3] - Key economic reports due include the Labor Department's Job Openings and Labor Turnover Survey for August and the Conference Board's consumer confidence index, which are expected to be scrutinized closely [3] Federal Reserve Insights - A series of Federal Reserve speakers, including Vice Chair Philip Jefferson and others, are anticipated to provide market direction [4] - The equity markets have performed well in the third quarter, with major indices like the S&P 500, Nasdaq, and Dow Jones Industrial Average poised for gains for the second consecutive quarter [4] Fourth Quarter Outlook - The fourth quarter is historically favorable for equities, driven by year-end positioning and increased holiday spending [5] - Earnings commentary will become increasingly important, particularly as companies signal intentions to raise prices, which could affect inflation and the Federal Reserve's policy decisions [5] Company Earnings - Nike is set to report earnings after market close, which will provide insights into consumer demand and margin trends; its shares showed a slight increase in premarket trading [6]