Stock futures were relatively unchanged on Friday after the market recorded new highs in the previous session, driven by strength in the artificial intelligence trade that appeared to overpower concerns about the U.S. government shutdown. Futures tied to the Dow Jones Industrial Average rose 41 points, or 0.1%. S&P 500 and Nasdaq 100 futures traded around the flatline. Shares of Apple were about 1% lower in premarket trading after Jefferies downgraded the iPhone maker to underperform from hold. The firm said that increased demand for the iPhone 17 has made expectations “excessive” for a foldable iPhone 18. The three major U.S. indexes climbed to record levels on Thursday, buoyed by gains in Nvidia, which also hit an all-time high. The government shutdown, which entered its third day on Friday, has exacerbated investors’ underlying concerns this year about macroeconomic and policy headwinds, inflation risks and a slowing labor market. Investors are waiting to see how long the shutdown will persist to gauge the seriousness of its economic repercussions. To be sure, shutdowns have not been market-moving events in the past. ″[Thursday’s] market moves suggest that the history of govt shutdowns still holds sway,” Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, wrote in a note. “These events have modest negative economic impacts as they occur, but the eventual reopening of the federal bureaucracy erases those nicks to the economy.” On Thursday, Treasury Secretary Scott Bessent told CNBC that the current lapse in government funding could lead to “a hit to the GDP, a hit to growth and a hit to working America.” President Donald Trump has threatened massive layoffs, which have stoked ongoing concerns about the jobs market. On Thursday, he said the Democrats have given him an “unprecedented opportunity” to cut federal agencies. The Congressional Budget Office estimates 750,000 federal workers will be furloughed each day. The shutdown also has led to an economic data blackout. The Labor Department’s pause on virtually all activity has blocked the Friday release of the September nonfarm payrolls report, lessening the amount of economic data the Federal Reserve can factor into its interest rate decision at its October meeting. However, it also removes a factor that could lend pressure to stocks. The stoppage began after Congress failed Tuesday to reach an agreement on government funding. Top Democrats have stayed firm on their demands to to pass a spending bill that would extend health care tax credits for millions of Americans, leading to retaliation from Trump and top Republicans. Despite the rancor, stocks are tracking for a winning week. The S&P 500 is up nearly 1.1% week to date, while the 30-stock Dow has added 0.6% and the Nasdaq has climbed 1.6%. “Bottom line: Sentiment jumped higher driven by an AI fervor that is seemingly ever increasing. Slowdown fears and “bubble” worries are rapidly being replaced by the Fear Of Missing Out. Fed cuts fell off investors’ minds while momentum trading (which is now long AI) is gaining steam,” wrote Goldman Sachs’ trading desk. U.S. Treasury yields were relatively unchanged on Friday as the government shutdown reached its third day and investors weighed the potential impact on the U.S. economy. The 10-year Treasury yield was up less than 1 basis point at 4.092%, as was the 2-year Treasury yield at 3.551%. The 30-year bond yield fell less than a basis point to 4.691%. Japan’s Nikkei 225 climbed 1.85% to close at 45,769.50, while the Topix ended 1.35% at 3,129.17. Australia’s ASX/S&P 200 rose 0.46% to 8,987.4. Hong Kong’s Hang Seng Index retreated 0.54% to 27,140.92, while the Hang Seng Tech Index fell 0.90% to 6,622.85. Chinese and South Korean markets were closed for holidays. Oil prices were stable on Friday but remained on course for a weekly loss of about 7-8% after news of potential increases to OPEC+ supply. Brent crude futures were up 32 cents, or 0.5%, at $64.43 a barrel. U.S. West Texas Intermediate crude was up 32 cents, or 0.53%, at $60.80. For the week, Brent was trading 8.1% down and WTI was on course for a 7.5% decline. “We are in a wait-and-see mode for what the OPEC+ Group of Eight will decide over the weekend,” said UBS analyst Giovanni Staunovo, adding that Friday’s modest price recovery is likely to be attributable to positive risk sentiment. Gold prices held steady on Friday, poised for a seventh consecutive weekly rise, as expectations of further U.S. interest rate cuts and concerns over the economic impact of a prolonged government shutdown lent support. Spot gold rose 0.1% to $3,861.04 per ounce by 1128 GMT, after hitting a record high of $3,896.49 on Thursday. The bullion has gained 2.7% so far this week. U.S. gold futures for December delivery rose 0.4% to $3,884.30 per ounce.