Here's what a government shutdown means for markets — and your wallet

Core Insights - A potential U.S. government shutdown could have significant implications for the economy and financial markets, affecting various sectors and consumer confidence [1] Economic Impact - The last partial U.S. government shutdown occurred in 2019, and a new shutdown could disrupt government services and delay economic data releases, which are critical for market analysis [1] - Historical data suggests that government shutdowns can lead to decreased consumer spending and business investment, impacting GDP growth [1] Financial Markets - Investors may react negatively to a government shutdown, leading to increased volatility in stock markets, particularly in sectors reliant on government contracts and funding [1] - Treasury yields could be affected as uncertainty rises, potentially leading to higher borrowing costs for companies [1] Consumer Confidence - A shutdown could erode consumer confidence, as uncertainty about government operations and services may lead to reduced spending [1] - The impact on consumer sentiment could vary by sector, with discretionary spending likely to be more affected than essential goods [1]