Dow Jones futures slid as potential US government shutdown looms

• Dow Jones futures fall as traders adopt caution on government shutdown risks.
• The possible government shutdown may delay the upcoming US jobs report this week.
• Wall Street opened on solid ground Monday, boosted by a rebound in artificial intelligence stocks.

Dow Jones futures decline 0.18% to trade near 46,500 during European hours on Tuesday, ahead of the regular session opening in the United States (US). Meanwhile, the S&P 500 futures slid 0.19% to stay near 6,700, while Nasdaq 100 futures fall 0.21% to move below 24,800.

US index futures struggle due to market caution as this week's US jobs report may be delayed, with the government nearing a funding freeze and possible shutdown. Congressional leaders failed to reach a deal during Monday afternoon's meeting. Traders await the September Nonfarm Payrolls report for insights into the labor market, alongside data on job openings, private payrolls, and the ISM manufacturing PMI.

US President Donald Trump has warned of mass federal job cuts if Congress fails to pass a funding bill, effectively putting his own government at risk and threatening further disruptions to federal operations.

On Monday's regular session, Wall Street started the week on a strong footing, lifted by a rebound in artificial intelligence shares. The Dow Jones advanced 0.15%, the S&P 500 climbed 0.26% and the Nasdaq surged 0.48%, led by tech and AI-focused companies. Nvidia gained by 2.1%, while AMD and Micron Technology rose 1.2% and 4.2%, respectively.

President Trump signed a proclamation on Monday imposing a 10% tariff on lumber imports and a 25% tariff on vanities, kitchen cabinets, and upholstered wooden products. The proclamation states that the tariffs will take effect on October 14, Reuters cited the White House.