How the US Shutdown and China Tensions Are Hitting Stocks and Crypto

The US financial landscape is currently defined by market volatility driven by escalating US-China trade tensions.

Stocks have seen sharp swings, with major indices reacting negatively to President Donald Trump's new tariff threats. This uncertainty has prompted a warning from the IMF that US stocks, particularly mega-cap tech, are at risk of a "sudden, sharp correction."

The ongoing government shutdown is compounding the situation by halting the release of critical economic data (like CPI and employment), increasing market uncertainty.

The shutdown is also creating a regulatory freeze for crypto, delaying legislative efforts and the review of financial products like crypto ETFs by the now-limited SEC. Overall, investors are focused on corporate earnings season for guidance, while the lack of government operations prolongs a period of economic and regulatory ambiguity.