Dow Jones futures remain steady as traders expect brief government shutdown

• Dow Jones futures steady, S&P 500 and Nasdaq rise on expectations of a short-lived US government shutdown.
• The government shutdown has put thousands of federal jobs at risk.
• US stocks gain as labor market weakness fuels expectations of additional Federal Reserve rate cuts.

Dow Jones futures hover near 46,700 during European hours on Thursday, ahead of the regular session opening in the United States (US). However, the S&P 500 futures advance 0.17% to stay above 6,750, while Nasdaq 100 futures rise 0.37% to break above 25,100.

US index futures show mixed performance as traders largely shrug off concerns over the ongoing US government shutdown. However, the shutdown put thousands of federal jobs at risk after partisan divisions blocked Congress and the White House from reaching a funding agreement.

The US Bureau of Labor Statistics halted virtually all activity, which may cause the delay of the September US Nonfarm Payrolls (NFP) report due on Friday. On Wednesday, the US ADP Employment Change showed the private sector payrolls declined by 32,000 in September, while annual pay growth was 4.5%. This figure followed the 3,000 decrease (revised from a 54,000 increase) reported in August and came in below the market expectation of 50,000.

On Wednesday's regular session, the Dow Jones rose 0.09%, while the S&P 500 advanced 0.34% and the Nasdaq Composite gained 0.42%. Health-care stocks led the rally, with Regeneron climbing 6.7%, Moderna up 6.8%, and AbbVie gaining 5.5%. Additional support came from optimism over Pfizer's 2.2% rise following its deal with the White House on Medicaid drug pricing.

US stocks also draw support as the labor market weakness boosts bets on further Federal Reserve (Fed) rate cuts. The CME FedWatch Tool suggests that markets are now pricing in a 99% chance of a Fed rate cut in October and an 87% possibility of another reduction in December.