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Why investors are brushing aside the threat of a government shutdown this week

1. Investors are optimistic despite possible government shutdown risks. 2. DJIA, S&P 500, and Nasdaq reached joint closing highs last week. 3. Strong economic growth at 3.8% supports market stability. 4. Shutdown may disrupt key economic data releases this week. 5. UBS sees shutdown as manageable, focusing on Fed rate cuts.

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FAQ

Why Bullish?

The overall economic growth and investor optimism outweigh shutdown risks, similar to past instances where economic indicators prompted resilience.

How important is it?

The combination of current economic indicators and investor responses to potential risks suggests a moderate to substantial impact on DJIA.

Why Short Term?

Current positive sentiment may lead to near-term gains, but concerns will resurface if shutdown occurs, reflecting September's historical challenges.

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