Schein: We could see bond yields spike later this week

Market Impact of Government Shutdown - The potential government shutdown may lead to increased bond yields due to uncertainty regarding Federal Reserve actions, particularly concerning job market data [2][3] - Historically, the stock market has shown resilience during government shutdowns, with an average increase of 1% the week before and 4% the week after [6] Economic Implications - A prolonged government shutdown could shave approximately 10 basis points off GDP for each week it lasts, indicating significant economic repercussions [5] - The longer the shutdown persists, the more negative the impact on both the economy and the market [7] Seasonal Trends - September is typically a weak month for the S&P 500, with historical declines of around 2%, but this year has not followed that trend so far [8] - The fourth quarter often sees a rebound, with an average return of about 5.5% in years where the market has risen 15-20% in the first three quarters [8] Company Focus: Nvidia - Nvidia is viewed positively due to its involvement in AI and potential growth in quantum computing and robotics, suggesting a new growth phase beyond current GPU and data center demand [10][11] - The company is expected to continue benefiting from corporate spending in the AI sector, as major players compete for technological advancements [14]