McCarthy Ouster Raises Shutdown Odds, May Rattle Markets Already on Edge

Ousting of House Speaker Kevin McCarthy raises chances of a government shutdown, says Goldman Sachs.

McCarthy's moves helped temporarily avoid a shutdown, but his absence makes a deal before November less likely.

Far-right Republicans led the revolt against McCarthy's concessions, and will pressure the next Speaker.

While a shutdown may be brief, it could rattle markets already facing economic challenges like high oil prices and auto strikes.

Shutdowns have brought 10%+ stock declines in the past; with markets selling off, another could deepen the slide.