Goldman Sachs analysts predict that the U.S. government is "more likely than not" to shut down later this year due to spending disagreements, which could temporarily impact economic growth by reducing it by 0.15-0.2 percentage points per week, with past shutdowns having minimal impact on equity markets.
Investors will have a lot to consider this week as they analyze economic indicators such as US nonfarm payrolls, wage growth, and inflation, as well as Eurozone inflation numbers and central bank commentary, all of which could impact policy decisions and market sentiment.
Investors are eagerly awaiting news about the health of the US labor market, with reports on job openings, labor turnover, employment, and job cuts expected this week, as the Federal Reserve aims to cool the economy to fight inflation caused by higher labor costs.
U.S. stock futures pause as investors await JOLTs labor market data and the upcoming jobs report, with expectations for interest rates influencing market sentiment.
Stock investors have been reacting positively to "bad economic news" as it may imply a slowdown in the economy and a potential halt to interest rate hikes by the Federal Reserve, however, for this trend to change, economic data would have to be much worse than it is currently.
Traders will have a break from the stock market on Labor Day following positive economic data that suggests a slowing economy and potentially prevents the Federal Reserve from raising interest rates, while other markets such as commodities and bonds will be closed, and stock futures are expected to rise; additionally, the crypto trade remains active.
U.S. stock investors are closely watching next week's inflation data, as it could determine the future of the current equity rally, which has been fluctuating recently due to concerns over the Federal Reserve's interest rate hikes and inflationary pressures.
The potential government shutdown threatens to deprive the Federal Reserve of crucial data on the labor market and inflation, which could hinder its ability to make informed decisions about the economy and interest rates.
Americans are feeling uncertain about the economy's direction and are starting to worry about a possible government shutdown, as consumer sentiment dips in September due to concerns about inflation and higher gas prices.
Investors are becoming increasingly cautious about the US stock market and the economy as 2023 draws to a close, leading to a more defensive investment approach by Wall Street banks and experts warning of potential pain ahead.
Lawmakers are dealing with a potential government shutdown as oil prices rise above $90 per barrel and housing data is expected, all ahead of the September FOMC meeting where the trends in inflation and the housing market will influence the Fed's decision on interest rates.
Investors will closely scrutinize the Federal Reserve's updated economic forecasts, particularly its interest rate outlook, to determine the market's next big story.
US stock futures rise as investors await Fed decision on rates; US debt rises to $33 trillion as government shutdown looms; Federal Reserve expected to pause rate hikes; Impact of government shutdown, autoworkers strike, and rising oil prices on the economy; Biden reshapes the Federal Reserve.
Investors shouldn't worry about a government shutdown as it is unlikely to have a significant impact on the markets.
Markets on Wall Street are expected to open with losses after the Federal Reserve suggests it may not cut interest rates next year by as much as previously thought, leading to a decline in futures for the S&P 500 and Dow Jones Industrial Average; uncertainty surrounding inflationary indicators and high rates is a major concern for traders moving forward.
The federal government is likely to face a shutdown that will affect various services, disrupt workers' pay, and create political turmoil as Republicans demand deep spending cuts.
The stock market ended the week with significant losses after the Fed's hawkish stance on monetary policy, and investors will be paying close attention to speeches from FOMC members, particularly Federal Reserve Chair Jerome Powell's perspective on the economy and policy; upcoming economic data, including the Consumer Confidence Index, Q2 2023 GDP Growth, and August's Core Personal Consumption Expenditures, will heavily influence the Fed's rate decisions.
Investors are expected to face more news on labor strikes, the Fed's inflation gauge, and earnings reports from companies like Costco and Nike this week.
A government shutdown on October 1 is likely, but it is not expected to have a significant impact on financial markets or cause an economic recession.
Investors are concerned about the possibility of a US interest rate hike and a government shutdown, which could impact the US credit rating and push the world's top economy into recession.
Stock futures inch down as Wall Street indices are expected to end September with losses, investors monitor budgetary stand-off in Washington, and Moody's warns of the negative impact of a potential government shutdown on the US rating; President Biden prepares to visit Michigan to support striking auto workers; Evergrande shares slip for the second consecutive day as the company's bond payment is missed; and oil prices decline on concerns over fuel demand amid central banks' commitment to combating inflation.
The impending government shutdown may have an impact on the financial markets, according to Kristina Hooper, Chief Global Market Strategist at Invesco.
A majority of Wall Street investors are concerned about the stock market's gains in 2023 and believe that it could retreat further as the risk for a recession increases.
Goldman Sachs' chief economist predicts that the U.S. government is likely to face a two-to-three-week-long shutdown beginning on October 1 due to the failure to reach an agreement on annual budget legislation.
The article warns of a potential government shutdown and advises readers to take action to protect their investments in the stock market.
Investors are concerned about the recent stock market decline due to surging oil prices, rising bond yields, and worries about economic growth, leading to a sell-off even in major tech companies and potentially impacting President Biden's approval ratings.
Investors are increasingly fearful due to a mix of factors including rising oil prices, expectations of higher interest rates, a sluggish Chinese economy, and the possibility of a US government shutdown, leading to concerns of a prolonged period of stagflation and a potential recession.
Millions of Americans anticipate a government shutdown as Congress struggles to pass a budget, potentially causing a short-term stock market gain.
Wall Street is likely to finish the last trading day of September on a positive note, despite the negative effects of a potential government shutdown, as evidenced by historical market performance during previous shutdowns.
Investor sentiment is being weighed down by factors such as rising interest rates, low bond yields, a potential government shutdown, and consumers facing rising prices without salary increases, but there is optimism that October could bring a turning point for the market.
A potential government shutdown in the US may lead to a delay or absence of the September consumer-price index report, which would complicate decisions for financial markets and the Federal Reserve.
Investors are showing signs of stress as big down days become more frequent and rebounds are scarce, with options traders warning against getting too comfortable amidst the risks of a narrowly-averted US government shutdown, rising Treasury yields, concerns about Federal Reserve action on inflation, and an auto-worker strike.
Investors will be keeping a close eye on the latest data on the U.S. labor market this week, which will have implications for consumer spending and the Federal Reserve.
Major market averages are mixed on Monday morning as Congress avoids a shutdown for now, with the bond selloff continuing; however, the US averted a shutdown just before the deadline, which will keep the government running until November 17th.
Investors can look forward to a positive start in October as the market mood is lifted by the shutdown deal.
Amid concerns about high oil prices, sticky inflation, and rising wages, investors may be poised to panic, but a closer look reveals a more positive long-term outlook with solid job market, moderating inflation, and decent growth.
