1. Congress is in impasse over a government shutdown funding extension. 2. Prediction markets show a 57% to 58% chance of a government shutdown. 3. Major stock indexes were down last week but remain up for the year. 4. S&P 500 closed down 0.3%, ending a three-week winning streak.
The potential for a government shutdown typically pressures market confidence. Historical instances, such as the 2013 shutdown, led to significant market volatility, impacting SPY negatively.
The article indicates a volatile situation with potential to harm market sentiment imminently. Market sentiment has a direct correlation with SPY's performance, particularly during economic uncertainties.
The government's budget deadline is imminent, creating immediate uncertainty. Past economic impacts from shutdowns usually resonate within weeks.