US stock futures drop as Trump-backed spending bill fails to pass By Investing.com

Investing.com– U.S. stock futures fell in Asian trade on Friday after a spending bill championed by President-elect Donald Trump was defeated in Congress, raising the prospect of a government shutdown.

fell 0.4% to 5,912.50 points, while down 0.5% to 21,263.0 points by 22:10 ET (02:10 GMT), down 0.3% and settled at 42,661.0 Futures extended losses after a slight dip in Thursday evening trade.

The bill was pulled together at the eleventh hour by policymakers to include Trump’s demands for higher government spending and a debt ceiling hike.

The new bill replaced a bipartisan deal to approve government spending after Trump and Tesla (NASDAQ: ) CEO Elon Musk spoke out against the old deal.

Government funding will end at midnight Friday, marking the start of a partial government shutdown that could disrupt operations from border security to travel.The disruption is expected to be especially dire amid increased travel trends during the holiday season.

Trump and Musk scrapped several provisions of the older bill, which they saw as wasteful giveaways to Democrats. tax cuts.

The government shutdown adds another layer of uncertainty to Wall Street, which was already reeling from steep losses earlier this week after the Federal Reserve cut interest rates but saw a significantly slower pace of interest rates in 2025.

This Friday also centers on key upcoming data for November.The reading is the Fed’s preferred gauge of inflation and is likely to influence interest rate forecasts.