Wall Street's record run could hit the pause button, with the major index futures all moving marginally to modestly lower early Tuesday. After the broader S & P 500 gauge closed higher for a seventh straight session, traders are pinning their hopes on an end to the government shutdown to keep the rally alive. 

On a positive note, President Donald Trump has signaled his readiness to negotiate with Democrats on the Affordable Care Act to break the impasse. In his comments to reporters at the Oval Office and later through a social media post, the president called for an immediate end to the shutdown. 

That said, the market could receive a boost from the ongoing buoyant sentiment toward artificial intelligence (AI). In a report released on Monday, FactSet stated that the IT sector has the highest number (36) of companies issuing positive earnings per share guidance for the September quarter, marking a record high, with the software and semiconductor equipment industries leading the way.

As of 12:45 a.m. ET on Tuesday, the S & P 500 and Nasdaq 100 futures fell 0.05% and 0.01%, respectively, while the Dow and Russell 2000 futures declined over 0.14% each.

After some initial indecision, stocks surged on Monday, driven by gains in the communication services, consumer discretionary, IT, energy, industrial, and utility sectors. The Nasdaq Composite, Nasdaq 100, S & P 500, and the Russell 2000 all ended in record territory, while the Dow Jones Industrial Average, a 30-stock blue-chip average, closed just off its peak. The risk-on mood came after chipmaker Advanced Micro Devices (AMD) announced a game-changing deal with AI startup OpenAI. 

The SPDR S & P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S & P 500 Index, and the Invesco QQQ Trust (QQQ) rose 0.36% and 0.75%, respectively. The iShares Russell 2000 ETF (IWM) gained 0.40%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) moved down 0.14%.

A strategist said he remains constructive on equities ahead of the third-quarter earnings season. WisdomTree Senior Economist Jeremy Siegel said,“Money growth is subdued, shelter inflation is rolling over, commodity pressure is contained, and the labor market is cooling-not cracking,” calling this the recipe for the Fed to continue easing. According to the economist, the market can handle slower growth if disinflation persists and AI-driven productivity shows up in 2026 and beyond.

More Federal Reserve speeches are scheduled for Tuesday, potentially providing cues for trading. Among the central bank officials making public appearances are:

• Atlanta Fed President Raphael Bostic (10 a.m. ET)
• Fed Vice Chair for Supervision Michelle Bowman (10:05 a.m. ET)
• Fed Governor Stephen Miran (10:45 a.m. ET bd also at 4:05 p.m. ET)
• Minneapolis Fed's Neel Kashkari (11:30 a.m. ET)

The Fed is scheduled to release its report on outstanding consumer credit at 3 p.m. ET, with the metric expected at $14 billion for August, down from $16 billion in July.

McCormick (MKC) will release its quarterly report before the market opens.

On the commodities front, crude oil futures rose in the Asian session, extending their gains from the previous day, and gold futures topped $4,000 before retreating just below the level. The 10-year Treasury note yield edged down in the Asian session after rising 4.3 basis points on Monday. The U.S. dollar is slightly higher against most major currencies.

Major Asian markets, which were open for trading, exhibited mixed sentiment, while the Chinese, Hong Kong, and South Korean markets remained closed due to public holidays. The Japanese stocks extended their gains, and the tech-heavy Taiwanese market rallied. On the other hand, the Australian and Malaysian markets retreated.

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