US market opened flat as investors awaited the release of consumer sentiment data amid a prolonged federal government shutdown for fresh clues about the economy.
In the early hours of trading, the Dow Jones Industrial Average rose 36.5 points, or 0.08%, to 46,394.88 at the open. The S&P 500 rose 5.4 points, or 0.08%, to 6,740.49, while the Nasdaq Composite rose 18.9 points, or 0.08%, to 23,043.519.
Due to the ongoing US government shutdown, the University of Michigan’s Consumer Confidence Index, along with its Consumer Expectations and Inflation Expectations indices, will become crucial economic indicators this Friday.
These surveys, which assess consumers’ views on personal finances, business conditions, and purchasing plans, significantly impact the US Dollar and are closely watched as forward-looking indicators of US economic trends.
For October, the UoM Consumer Sentiment is expected to fall to 54.2, down from 55.1 in September, indicating a continued decline in consumer confidence.
Consumption plays a key role in the US GDP, making this index highly relevant.
The report comes amid a broader economic data blackout due to the shutdown, which has delayed the release of the key Nonfarm Payrolls report and added to concerns about the labour market’s health.
Recent employment data, including the ADP Employment Change report, showed a significant decline in private payrolls in September, and hiring plans by US businesses hit a 16-year low.
These developments, combined with President Trump’s warning of potential public sector layoffs, have deepened pessimism about job prospects, further eroding consumer sentiment.
With the UoM index expected to dip to a five-month low, these trends show growing uncertainty about the economy.