The US government shutdown is confirmed for January 31, and markets are expected to take a hit. The stalled DHS funding bill is the main cause, and if it doesn't pass, a partial shutdown will occur, affecting government contracts, paychecks, and data releases.
Here's what's at stake:
- GDP Impact: A shutdown could crash GDP by 2.8%, wiping out trillions in stock market value, as seen in 2025.
- Market Sell-Off: Bonds will sell off first, followed by stocks, crypto, and commodities.
- Current Market Trends:
- Gold is down ~9% $XAU
- Silver has dumped ~14% $XAG
- S&P 500 fell ~2%
- Bitcoin crashed ~7%
$BTC The shutdown will likely lead to:
- Delayed paychecks for government employees
- Stalled government contracts
- Halted approvals
- Delayed key data releases
This uncertainty will slow the economy, and markets are expected to react negatively.
Stay Safe! And Trade Accordingly.
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