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A Government Shutdown Is Looming. There’s One Last Chance to Avoid It.

1. Government shutdown looms; Trump meets congressional leaders for talks. 2. The deadlock is about extending health subsidies for 24 million Americans. 3. A short-term funding bill passed the House but failed in the Senate. 4. Shutdown could halt nonessential services and delay September jobs report. 5. Congressional leaders from both parties are expected to negotiate again.

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FAQ

Why Bearish?

A government shutdown generally causes market uncertainty and instability. Historical instances, like the 2013 shutdown, led to negative market reactions.

How important is it?

The potential for a shutdown could create significant volatility, affecting SPY due to investor reactions. Major economic reports and services are likely to be impacted.

Why Short Term?

Impacts from a government shutdown could be immediate, affecting investor sentiment and market confidence. Past shutdowns have often resulted in quick market sell-offs.

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