US fourth-quarter GDP could be negative if shutdown drags on, White House economic adviser says
1. Federal shutdown could negatively impact U.S. economic growth in Q4. 2. Potential downturn may affect S&P 500 performance indirectly.
FAQ
Why Bearish?
Historical data shows that government shutdowns often lead to reduced economic activity and investor confidence, causing declines in major indices like the S&P 500.
How important is it?
The potential for negative economic growth is significant, influencing investor sentiment and decisions, particularly in a major index like the S&P 500.
Why Short Term?
Immediate effects could be seen if the shutdown persists, creating uncertainty for investors and impacting Q4 earnings outlooks.