Dow Jones futures gain as US shutdown hopes boost sentiment

• Dow Jones futures rise due to a risk-on mood, driven by hopes of US government shutdown ending.
• The market sentiment improved as weaker ADP labor data reinforced expectations of Fed policy easing in December.
• Wall Street showed mixed results on Tuesday as investors rotated from tech to blue-chip stocks.

Dow Jones futures gain 0.15% to trade near 48,100 during European hours ahead of the opening of the United States (US) regular session on Wednesday. Moreover, the S&P 500 futures and Nasdaq 100 gained by 0.33% and 0.55%, with trading near 6,900 and 25,800, respectively.

US index futures advance as market sentiment improves amid the ongoing process of ending the United States (US) government shutdown. The US Senate completed its job and passed the bill that would end the government shutdown.

The US House will vote on the funding bill on Wednesday, sending it to US President Donald Trump for signature. That would reopen the government, sending paychecks and unleashing economic data releases. Trump already backed a bipartisan deal to end the US government shutdown.

Additionally, the risk-on sentiment increased as weaker-than-expected private US labor data, released on Tuesday, increased the likelihood of Federal Reserve (Fed) policy easing. The CME FedWatch Tool shows markets pricing in nearly a 66% chance of a 25-basis-point Fed rate cut in December, up from 62% a day ago. Automatic Data Processing (ADP) reported that the US Employment Change showed an average weekly job loss of 11,250 in the four weeks to October 25.

On Tuesday's regular US session, Wall Street ended mixed, with the Dow Jones climbing 1.18% to a new record high, while the S&P 500 rose 0.21% and the Nasdaq 100 slipped 0.25%. Investors rotated out of tech stocks into blue-chip and cyclical names amid optimism that a funding deal will pass the House this week.

Gains in consumer giants such as Walmart rose 1% and McDonald's gained 2.6%, lifting the Dow Jones, while AI-related stocks declined on valuation concerns, led by Nvidia falling 3%, AMD losing 2.6%, and Palantir dropping 1.3%.