As the US government shutdown continues and tariff concerns resurface, the US stock market is preparing for a significant challenge.
According to the Dow Jones market data, the upcoming week will see Wall Street’s banking behemoths begin their third-quarter company earnings reports, potentially offering a market catalyst amidst the data vacuum created by the shutdown.
The S&P 500 is heading for its poorest performance during a shutdown since 1990. The index has dropped 2% since the shutdown began on October 1. President Donald Trump‘s threat of a “massive increase” in tariffs on Chinese goods further compounded this, erasing the S&P 500’s weekly gains, as per Dow Jones Market Data.
Investors were left in the dark due to the shutdown, missing the U.S. jobs report from the Bureau of Labor Statistics in early October.
The release of inflation data from the consumer-price index, originally scheduled for this week, has been postponed until October 24, adding to the uncertainty caused by the government shutdown, reports The Marketwatch.
Also Read: Economist Predicts ‘Gigantic Price Bubble’ in Stock Market Amid Rising Valuations
Anticipated earnings reports from JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC), Citigroup Inc. (NYSE:C), and Goldman Sachs Group Inc. (NYSE:GS) on coming Tuesday, followed by Bank of America Corp. (NYSE:BAC) and Morgan Stanley (NYSE:MS) on Wednesday, are expected to shed light on the economy and Wall Street’s profitability.
The ongoing government shutdown and the threat of increased tariffs have created a challenging environment for the stock market.
The upcoming earnings reports from major Wall Street banks will be critical in providing insights into the current state of the economy.
The delay in key economic data releases due to the shutdown has added to the uncertainty, making these earnings reports even more crucial. The performance of these banks could potentially set the tone for the market amidst these turbulent times.
Read Next
Cryptocurrency Market Faces Renewed Pressure as Bitcoin, Ethereum Drop to Multi-Week Lows
