S&P500: Pre-Market Calm as Consumer Sentiment Looms, Shutdown Clouds Outlook

Market Performance - The S&P 500 and Nasdaq are tracking small weekly gains of 0.3% and 1.1% respectively, while the Dow is pacing for a 0.9% weekly decline [1] - Nvidia's shares are up 2.6% this week following positive comments from CEO Jensen Huang regarding increased computing demand, which has reignited enthusiasm in the AI sector [1] Economic Outlook - The U.S. government shutdown has entered its tenth day, causing delays in key economic data releases, including September's inflation figures [2] - The University of Michigan's consumer sentiment index, set for release, may gain significance due to the absence of government data, with potential implications for the economy if the shutdown continues [3] Earnings Season - Corporate earnings will be in focus next week, with major banks like JPMorgan Chase and Citigroup set to report third-quarter results, which may provide insights into credit quality and consumer health [4] Federal Reserve Commentary - Fed Governor Christopher Waller indicated that there is still room for additional rate cuts, but emphasized the need for caution, reflecting the balance between softening growth and persistent inflation concerns [5] Market Forecast - Traders may experience choppy market action into early next week due to limited economic data, but improving earnings visibility and expectations for further Fed easing could sustain a bullish trend once the government impasse is resolved [6]