Government Shutdown: Market Reaction, Watching Yields and U.S. Dollar

With the U.S. government shutdown in effect, the market's initial reaction has been relatively calm says Kevin Green, but that could change if the stalemate continues. The 10-year yield is currently flat, and the dollar is holding steady, but a prolonged shutdown could lead to a sell-off in equities and a flight to safety in Treasuries. KG notes that the ADP jobs report will take on added importance in the absence of the non-farm payrolls data, which was scheduled for Friday. For today's session, KG's S&P 500 (SPX) targets for the day are 6675 to the upside and 6600 to the downside, with a focus on defensive sectors like utilities, consumer staples, and healthcare.

Morning Movers

01 Oct 2025

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