The partial government shutdown is currently underway after the House of Representatives failed to pass a budget agreement. Lawmakers may resolve this when they reconvene on Monday — or they may not. Since this occurs over the weekend, the market has NO chance to react. That reaction will now come on Monday morning. Until then, the market opens with risks from the news. Here’s what traders will be watching when the market opens: • Market reaction in futures when opening • Sudden volatility due to policy uncertainty • Risk assets pricing in a longer shutdown • Shift toward Treasury bonds and safe-haven assets • Lack of economic data creating macro blind spots Historically, short-term shutdowns rarely crash the market. But they increase uncertainty — and markets hate uncertainty more than bad news. Since this shutdown began with low liquidity, price discovery has been delayed, not avoided. Monday is the pay date. Washington may shut down again. But markets never close. 🔥
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The US is closing while the market remains calm
The partial government shutdown is currently underway after the House of Representatives failed to pass a budget agreement.
Lawmakers may resolve this when they reconvene on Monday — or they may not.
Since this occurs over the weekend, the market has NO chance to react.
That reaction will now come on Monday morning.
Until then, the market opens with risks from the news.
Here’s what traders will be watching when the market opens:
• Market reaction in futures when opening
• Sudden volatility due to policy uncertainty
• Risk assets pricing in a longer shutdown
• Shift toward Treasury bonds and safe-haven assets
• Lack of economic data creating macro blind spots
Historically, short-term shutdowns rarely crash the market.
But they increase uncertainty — and markets hate uncertainty more than bad news.
Since this shutdown began with low liquidity, price discovery has been delayed, not avoided.
Monday is the pay date.
Washington may shut down again.
But markets never close. 🔥