By Niket Nishant and Sukriti Gupta

(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."

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 17, 2025. REUTERS

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 (WEED.TO), and Cronos Group (CRON.TO), climbing 11.9% and 9.5%, respectively, while Tilray Brands (TLRY.O) added 20%. Trump on Sunday shared a video promoting the health benefits of hemp-derived cannabidiol.

Electronic Arts (EA.O) 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.CO) agreed to acquire the Dutch biotech firm for $8 billion in cash.

MoonLake Immunotherapeutics (MLTX.O) slumped 88%, after the company reported mixed results from two late-stage trials of its experimental skin disease drug on Sunday.