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.
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.
Treasury Secretary Janet Yellen believes that there are no signs of an economic downturn, but warns that a government shutdown could undermine economic momentum.
Senate Minority Leader Mitch McConnell says government shutdowns have been politically damaging for Republicans and have never resulted in policy changes, emphasizing his opposition to shutdowns amid the ongoing disagreement in Congress over government funding.
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.
Investors should not be overly worried about the potential government shutdown's impact on the market, as historical trends indicate that any weakness will likely be a buying opportunity from a short-term trading perspective.
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.
A potential government shutdown in Washington could have far-reaching consequences, causing financial losses for millions of people, disrupting medical research and food access, delaying regulatory efforts, and hampering the Biden administration's agenda on energy, climate, and infrastructure.
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.
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.
A government shutdown in the US may cause the Federal Reserve to delay an interest rate hike and could impact the recent strength of the dollar, analysts have warned. The shutdown could also lead to a delay in key inflation data, which would affect Fed policy decisions, and may put pressure on consumer spending.
The federal government is on the verge of a shutdown, with potential consequences for various areas of governance.
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 impending government shutdown may have an impact on the financial markets, according to Kristina Hooper, Chief Global Market Strategist at Invesco.
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.
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 U.S. government is facing a potential shutdown if Congress does not resolve a deadlock by this weekend, which would result in furloughs or unpaid work for federal workers and military employees, but experts believe the impact on the economy and stock market will be short-lived.
Millions of Americans anticipate a government shutdown as Congress struggles to pass a budget, potentially causing a short-term stock market gain.
A government shutdown could result in millions of federal employees and military service members not getting paid, government contractors facing financial uncertainty, economic consequences such as raising the unemployment rate and lowering GDP growth, and disruptions to services and business operations across the country.
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 is likely to happen due to the incompetence and dysfunction of House Republicans, according to Democratic Congressman Jamaal Bowman.
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.
The stock market declined as the Dow lost 430 points and the Nasdaq lost 248 points, with the overall market being negatively affected by a higher 10-year bond yield and robust labor force data, while political turmoil in the House of Representatives and the possibility of a government shutdown added to the market's uncertainty.
The ousting of House Speaker Kevin McCarthy raises the odds of a government shutdown in November, which could negatively impact the stock market and further challenge an already struggling economy.
