US SHUTDOWN

Stock markets are sliding today as investors watch the potential impacts of a paralysis of the U.S. federal government. The S&P 500 and Nasdaq Composite indices are falling, with the Nasdaq down nearly 1.8% and the S&P 500 down around 1.2%. The Dow Jones Industrial Average is also weakening as markets adjust for risks tied to political uncertainty. The threat of a partial government shutdown could affect fiscal stimulus and the regular release of economic data, raising concerns not only about the domestic political situation but also about the implications for businesses and consumers. In an environment of heightened uncertainty, investors tend to be less willing to hold risky assets—such as technology and growth stocks—and increased volatility is expected if the government situation is not resolved quickly.