Stability on the Horizon: Wall Street Awaits Government Reopening Amid Tech Resurgence

Wall Street futures remain cautious as tech valuations spur concern, amid a possible government reopening from the longest U.S. shutdown in history. As tech and AI shares recover, the market anticipates delayed economic data updates. Key tech outcomes include Nvidia's decline and CoreWeave's reduced forecast.

Wall Street futures struggled to find direction on Tuesday, as apprehensions about high technology valuations resurfaced amongst investors, overshadowing expectations of a potential end to the longest U.S. government shutdown on record. The markets made a striking recovery on Monday, buoyed by optimism that the shutdown resolution would soon arrive, lifting the day's trading to record gains.

Tech and AI shares experienced a significant rebound following last week's downturn, with the Nasdaq and S&P 500 posting their largest daily increases in months. Market observers noted that the reopening of the government is expected to provide overdue economic data, offering insights that could shape future trading decisions.

The impending release of ADP's private payroll figures is also a focal point, promising to shed light on the labor market's condition. Notably, Nvidia shares fell as investor SoftBank disclosed divestment from the AI leader, echoing wider concerns in the tech sector. Meanwhile, the U.S. Senate's approval of a compromise for reopening promises economic relief, as attention turns to the House and President Trump's endorsement.

(With inputs from agencies.)