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Futures up: Dow 0.37%, S&P 500 0.49%, Nasdaq 0.65%

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Cannabis stocks surge after Trump endorses cannabidiol

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Electronic Arts ( EA ) up after $55 billion take-private deal

(Updates before markets open)

By Niket Nishant and Sukriti Gupta

Sept 29 (Reuters) - Wall Street's main indexes were

poised to open higher on Monday, kicking off a potentially

turbulent week on a strong footing as investors shrugged off

hawkish remarks from a Federal Reserve official and weighed the

impact of a government shutdown.

The moves build on Friday's gains, when an in-line inflation

print kept hopes for rate cuts alive and lifted all three major

indexes, despite their overall declines for the week.

Cleveland Fed President Beth Hammack, among the most hawkish

Fed officials and not a voter on policy this year, said the

central bank needed to maintain restrictive monetary policy to

cool inflation. Traders, however, are pricing in a 91.4% chance

of a 25-basis-point cut at the next Fed meeting.

At 08:32 a.m. ET, Dow E-minis were up 174 points, or

0.37%, S&P 500 E-minis were up 32.5 points, or 0.49%,

and Nasdaq 100 E-minis were up 160.3 points, or 0.65%.

Attention is now riveted on a standoff between Republicans

and Democrats over funding that has raised the prospect of a

shutdown beginning Wednesday, the first day of the U.S.

government's 2026 fiscal year.

"I don't think the shutdown is the doomsday scenario," said

Mel Casey, senior portfolio manager at FBB Capital Partners.

"It could actually be an opportunity for Republicans to push

through more government spending cuts."

Still, some analysts warned that a shutdown could stall the

release of key economic data, including Friday's nonfarm

payrolls report, and cloud the outlook at a critical juncture

for markets.

With the Fed emphasizing its data-dependent approach, any

loss of visibility into economic indicators could complicate

policy decisions, adding to risks, especially at a time when

equity valuations are stretched.

Through the day, investors will closely monitor the

commentary from several other Fed policymakers, including New

York Fed President John Williams, St. Louis Fed President

Alberto Musalem and Atlanta Fed President Raphael Bostic, for

any signs of concern over the potential loss of economic

visibility should a shutdown materialize.

Also on the docket on Monday is the National Association of

Realtors' pending home sales index for August. A leading

indicator of housing activity, the report comes as the sector

continues to struggle with elevated mortgage rates.

In premarket trading, U.S.-listed shares of cannabis-related

companies rose, with Canopy Growth ( CGC ) and Cronos

Group ( CRON ) climbing 11.9% and 9.5%, respectively,

while Tilray Brands ( TLRY ) added 20%. Trump on Sunday shared a

video promoting the health benefits of hemp-derived cannabidiol.

Electronic Arts ( EA ) climbed 5.5% after agreeing to be

taken private in a $55 billion deal.

U.S.-listed shares of Merus NV surged 37%, after

Danish pharmaceutical company Genmab ( GMAB ) agreed to acquire

the Dutch biotech firm for $8 billion in cash.

MoonLake Immunotherapeutics ( MLTX ) slumped 88%, after the

company reported mixed results from two late-stage trials of its

experimental skin disease drug on Sunday.