Street fears end of September closure will add to persistent economic concerns
A potential U.S. government shutdown at the end of September could add to worries about the economy going into year-end and beyond, investors said.
Past shutdowns’ impact on U.S. stocks, meanwhile, has been slight: the S&P 500 has fallen by an average of 0.4% in the week before a shutdown, and gained a total of 0.1% over the length of all shutdowns since 1976, according to CFRA Research data. Resilient growth in the face of higher interest rates has helped power the S&P 500 to a nearly 16% gain this year, though the index is off some 4% from its July highs following a surge in Treasury yields that has spooked some investors.
Goldman Sachs estimates that such a reduction would amount to a cut of 0.6% from the current U.S. gross domestic product. Paul Christopher, head of global investment strategy for Wells Fargo Investment Institute, believes any shutdown would likely be protracted as Republicans and Democrats begin positioning themselves for the presidential and congressional elections next year.
The White House last month said it was working with Congress to hammer out a short-term funding measure to avoid a shutdown while longer-term spending talks continue.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Saskatoon implements flood control in Churchill ParkThe pond will help prevent flooding at more than 50 properties around Ruth Street and Cairns Avenue, Bute Street and Munroe Avenue, and Ruth Street and York Avenue.
Read more »
UN chief heat officer says warming cities pose potential to be major killers(Reuters) - The United Nations' first global chief heat officer called on Wednesday for political leaders to make firm commitments at November's COP28 ...
Read more »
Potential FTC antitrust suit against Amazon 'an overhang' for the stock: AnalystAmazon's potential battle with the FTC could weigh on the stock near-term, says Goldman Sachs' top tech analyst.
Read more »
ToolTown SALE up to -70%, September 6thCatch the first autumn D E A L S ! HUGE SAVINGS OF UP TO 70% OFF on Hand & Power Tools, Automotive, Painting, Tarps, Hardware, Outdoor Tools and more! Come in store or order online until September 14th. Please check out our flyer: https://tooltown.
Read more »
Bank of Canada Holds at 5% in Potential End to Historic Hikes(Bloomberg) -- The Bank of Canada held interest rates steady and kept the door open to further hikes, with economists seeing its historic tightening cycle at its likely endpoint.Most Read from BloombergIndia’s Moment Has Arrived, and Modi Wants a New Global OrderFed Set to Double Its Economic Growth Forecast After Strong US DataSoaring US Dollar Raises Alarm as China, Japan Escalate FX PushbackChina Slowdown Means It May Never Overtake US Economy, Forecast ShowsHuawei Teardown Shows Chip Breakth
Read more »
Slide into autumn with lots to discover in CBC's Top 5 for SeptemberSummer may be over but things are starting to heat up on CBC.
Read more »