Market Jitters: U.S. Stock Futures Tumble Amid Government Shutdown Threat

U.S. stock index futures declined as investors worried about a potential government shutdown and higher interest rates influenced by trade and policy decisions under President-elect Trump. Concurrently, European markets were volatile due to potential tariffs. Industry movements included Nike's revenue forecast decline and FedEx's strategic restructuring.

U.S. stock index futures took a hit on Friday with concerns mounting over a looming government shutdown and the prospect of increased interest rates, anticipated ahead of a key inflation report. Investors are closely monitoring possible disruptions as Congress faces an impasse over President-elect Trump's spending bill.

On Wednesday, significant opposition from Republicans left Congress without a solution to prevent government funding expiry. The revised Fed projections announced this week shook Wall Street, directly influenced by Trump's proposed tariffs, tax cuts, and deregulation efforts.

European markets also experienced a downturn as President Trump threatened tariffs against the EU. Stock movements included a notable decline in Nike shares following a downbeat revenue forecast, while FedEx shares jumped after announcing the spinoff of its freight division to streamline core operations.

(With inputs from agencies.)