1. U.S. stock indexes may lose quarterly gains due to a possible government shutdown. 2. Investor anxiety increases regarding Federal Reserve's next actions amid economic data delays.
The potential for a government shutdown often leads to negative market sentiment. Historically, government shutdowns have created uncertainty, affecting stock prices, including the S&P 500.
The looming government shutdown and data delays are crucial for investors' perceptions of market stability. They directly influence the Federal Reserve's decision-making, which significantly affects the S&P 500.
The immediate aftermath of a potential shutdown usually impacts market volatility quickly. For instance, during past shutdowns, markets have reacted negatively in the short term until clarity is achieved.