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.
Stocks are overvalued and a recession is expected in the first half of next year, according to economist Steve Hanke. He predicts that inflation will cool, Treasury yields will fall, and house prices will remain stable.
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.
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.
The White House warns that a government shutdown at the end of the month could have damaging consequences for the economy, national security, and the American public.
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.
Concerns over a possible U.S. government shutdown, rising oil prices, and a heavy schedule of Treasury debt sales are adding pressure to the markets, along with the ongoing property crisis in China and the effects of last week's hawkish Federal Reserve projections.
The S&P 500 typically experiences a decline before US government shutdowns, but tends to rebound and gain in the following months; however, the current shutdown may add to short-term market volatility amidst already challenging economic conditions.
A U.S. government shutdown would negatively impact its credit assessment and highlight the weakness of its institutional and governance strength compared to other top-rated governments, according to Moody's, although the economic impact would likely be short-lived.
Stocks closed lower across the board as rising Treasury yields and disappointing economic data, including a drop in consumer confidence, contributed to the September selloff, while concerns over a potential government shutdown added to worries and Moody's warned of a potential U.S. credit downgrade.
The possibility of a government shutdown in the U.S. could have negative implications for the crypto industry's regulatory progress and projects, similar to the effects seen in the previous shutdown in 2018 and 2019, with delays in approvals and a withdrawal of a bitcoin ETF application.
The risks of a near-term recession are increasing due to potential government shutdown and strikes in the auto industry, which are weighing on consumer confidence, according to J.P. Morgan Asset Management Global Market Strategist Jack Manley.
A brief government shutdown is unlikely to significantly slow down the economy, but a prolonged shutdown could hurt growth and potentially impact President Biden's re-election prospects.
A government shutdown in the U.S. could cause significant disruptions in the stock and bond markets, with the Securities and Exchange Commission being forced to furlough most of its staff and leaving the market oversight at a "skeletal" crew level.
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.
There is a 90% chance of a government shutdown, according to Goldman Sachs, as the deadline looms and little progress has been made in negotiations.
The initial public offering market is facing a potential halt due to a possible government shutdown.
A government shutdown would severely impact the U.S. Securities and Exchange Commission's ability to approve IPOs and respond to market turmoil, according to its chair, Gary Gensler.
Stocks closed mixed on Tuesday as investors worried about higher interest rates, rising bond yields, a spike in oil prices, and the possibility of a government shutdown, though a stronger-than-expected reading on U.S. manufacturing activity provided some positive news. The ongoing autoworkers strike and inflation concerns also weighed on market sentiment, while oil prices continued to rise, benefiting certain energy companies. Despite concerns, historical data suggests that government shutdowns have not had a significant negative impact on stocks in the past.
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.
A potential US government shutdown could disrupt the release of important economic data, leading to market volatility and forcing investors to rely on alternative sources of information, potentially impacting monetary policy decisions and delaying key reports such as the October 6 payroll report.
U.S. Treasury Secretary Janet Yellen warns that a potential government shutdown would harm economic progress, impacting key programs for small businesses and children and delaying infrastructure improvements.
A government shutdown could lead to disruptions in food aid, air travel, and financial markets, and increase the risk of cyber attacks on critical financial infrastructure, according to Karen Petrou of Federal Financial Analytics Inc.
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.
The government is on the brink of a shutdown because Congress has not passed the necessary spending bills, and it remains uncertain how it will reopen as there is a disagreement over spending between right-wing Republicans and the Senate and White House controlled by Democrats.
Investors will be closely watching market reactions to a late deal to avert a government shutdown, as well as key data on the labor market this week, while concerns about higher interest rates and the impact on the economy weigh on stock futures.
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.
The stock market closed off its lows as major indexes improved in the final hour of trading, although investors remained hesitant due to higher-than-expected inflation numbers.
