US OPEN: Downward Pressure on U.S. Markets Amid Government Shutdown

Overall, the session on U.S. stock markets is unfolding under downward pressure. Futures on the Nasdaq 100 and S&P 500 are currently down around 0.9% and 0.5%, respectively. The negative sentiment is partly driven by warnings from investment banks about a potential market correction and a softening mood in the technology sector. Investors remain cautious, awaiting further macroeconomic data and corporate earnings in a challenging market environment.

The quarterly earnings season is still ongoing and continues to significantly influence market sentiment. After today’s session, key technology players including AMD and Arista Networks are expected to release their reports. Market participants will closely monitor these results, as they may provide guidance on the market’s next moves and the potential continuation of the recent rally. AMD is focusing primarily on artificial intelligence and data center solutions, while Arista Networks is concentrating on expanding network infrastructure to accommodate growing data traffic and cloud computing demand.

In the background, the effects of the prolonged U.S. government shutdown, ongoing since October 1, are still being felt. The closure of federal agencies such as the BLS, BEA, and Census Bureau has delayed the release of many key macroeconomic indicators. For example, today’s JOLTS report on job openings and labor turnover will not be published. The absence of these data points increases investor uncertainty and complicates assessments of economic conditions and the likely direction of Federal Reserve policy. Private-sector data, including PMI indices and consumer sentiment surveys, remain available but cannot fully replace the missing government statistics.

US500 (H1 Interval)

S&P 500 futures are declining, showing a short-term correction within a broader downward trend. Investor caution is evident, reflecting macroeconomic uncertainty and anticipation of technology company earnings, which have been key drivers of market sentiment in recent weeks. From a technical perspective, the short-term rebound has not breached significant resistance levels or moving averages, indicating that supply-side pressure remains strong. Current sentiment points to heightened risk aversion, and upcoming macro releases and earnings reports could determine the index’s next direction.

Source: xStatio5

Company News:

• Uber (UBER.US) remains under significant pressure, dropping approximately 7–8% after reporting Q3 2025 results. Despite exceeding revenue and earnings expectations, investors focused on a more conservative Q4 profit forecast, which fell short of market expectations. Double-digit growth in rides and revenue was not enough to offset concerns about further expansion, prompting caution and share sell-offs.

• Pfizer (PFE.US) is up roughly 1.3%, reacting positively to Q3 2025 results that beat analyst expectations. The company raised its full-year profit guidance, supporting investor optimism, despite a 6% year-over-year decline in revenue.

• Merck (MRK.US) is gaining around 2% following a strategic agreement with Blackstone Life Sciences, through which Merck will receive up to $700 million to develop an innovative cancer therapy.

• Palantir Technologies (PLTR.US) reported Q3 2025 earnings above expectations and also raised revenue guidance for Q4 and the full year, citing growing demand for its AI technologies and a strong position in the U.S., particularly in government and commercial sectors. Despite strong results, Palantir shares are down about 7%, reflecting profit-taking by investors.