Market Overview: U.S. Shutdown Impact

The ongoing U.S. government shutdown — now the longest in history — is stirring uncertainty across markets. Despite the turmoil, the S&P 500 remains resilient above 6,756, a key support level. Historically, the index gains 12–13% within a year after shutdowns, hinting at potential long-term upside.

However, short-term risks persist. The VIX sits at 16, signaling market complacency and potential for sudden volatility spikes. The U.S. dollar strengthens as investors seek safety, while global equities show fatigue.

The CBO projects a 1–2% hit to Q4 GDP, with each week of shutdown shaving 0.1% off annualized growth. Traders face challenges as key data releases like NFP and CPI are delayed.

Strategy: Watch support at 6,756–6,550. Use defined-risk options (e.g., vertical spreads), trade short-term, and buy dips cautiously — history suggests shutdown slumps don’t last forever.