Sept 30 (Reuters) - U.S. stock index futures were lower on Tuesday, as investors awaited a crucial labor market report, while fretting over likely delays in the release of key economic data due to a potential government shutdown.
Investor sentiment has shifted back toward risk aversion, just a day after equities posted gains. While previous shutdowns have had limited impact on markets, some analysts warned that the current episode could be more disruptive given the delicate economic backdrop.
"Shutdowns are more apt to be a temporary disruption rather than a permanent drag where the short-term economic impacts are often recouped over time," said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers.
"However, the length of any shutdown can impact the collection and release of important economic data, especially at a time when the economy is at a crucial juncture with regard to growth and inflation."
At 06:42 a.m. ET, Dow E-minis were down 131 points, or 0.28%, S&P 500 E-minis were down 15.5 points, or 0.23%, and Nasdaq 100 E-minis were down 54.75 points, or 0.22%.
The Federal Reserve's data-dependent stance has heightened the importance of upcoming releases, with investors hoping for a steady stream of benign readings to keep rate-cut expectations alive and support the equity rally.
With the risk of delayed data looming over markets, the economic reports due on Tuesday, including the Labor Department's Job Openings and Labor Turnover Survey for August and the Conference Board's consumer confidence index, could carry added significance and attract heightened scrutiny.
Traders will also look to a busy slate of Fed speakers for direction, including Vice Chair Philip Jefferson, Boston Fed's Susan Collins, Chicago Fed's Austan Goolsbee and Dallas Fed's Lorie Logan.
Equities have held up well through the third quarter, with the benchmark S&P 500 (.SPX), , the tech-heavy Nasdaq (.IXIC), and the blue-chip Dow Jones Industrial Average (.DJI), all set to notch gains for a second straight quarter.
Markets will now enter the fourth quarter, historically a favorable stretch for equities due to year-end positioning and holiday spending.
Earnings commentary will start to take center-stage during the period, especially as several companies indicated plans to raise prices, a move that could have implications for inflation and, by extension, the Fed's policy path.
Nike (NKE.N), is scheduled to report earnings after markets close on Tuesday, offering an early look at consumer demand and margin trends. Its shares were flat in premarket trading.
Chipmaker Wolfspeed (WOLF.N), surged 23.2% a day after exiting bankruptcy. Firefly Aerospace (FLY.O), dropped 9.9% after a testing mishap destroyed the core booster for its centerpiece Alpha rocket.
EchoStar (SATS.O), jumped 7.2% after Bloomberg News reported on Monday that Verizon Communications (VZ.N), was in discussions with the telecommunications services firm about purchasing some of its wireless spectrum.
Reporting by Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Shilpi Majumdar and Anil D'Silva
