Market Uncertainty Rises Amid Shutdown Fears, Tech Stocks Show Resilience
Investors face heightened uncertainty as the U.S. government shutdown deadline looms, with political gridlock in Washington threatening to disrupt critical economic data releases. The Federal Reserve's reliance on such data for policy decisions adds to market volatility risks.
Despite these headwinds, technology stocks continue to outperform, with the 'Magnificent Seven' tech giants driving momentum in the S&P 500 and Nasdaq. This sector strength has offset concerns about tariffs, debt levels, and labor market cooling.
A prolonged shutdown could trigger broader consequences, including potential credit rating reassessments and blurred inflation outlooks. Market participants remain cautiously optimistic but are closely monitoring fiscal stability risks.
