Market trend remains intact despite government shutdown, says Wharton's Jeremy Siegel

Market Trends - The current stock market trend remains positive, with no immediate factors derailing it, including the government shutdown, which is expected to last between 10 days to two weeks [2][4] - Consumer sentiment has seen a slight decline, but the overall market is anticipated to remain resilient due to strong capital and AI spending, which is expected to offset any consumer slowdown in the fourth quarter [3][7] Economic Indicators - The upcoming earnings reports for the third quarter are highly anticipated, particularly in relation to the impact of tariff hikes expected to be more pronounced in the fourth quarter [3][4] - The Federal Reserve is likely to implement a 25 basis point rate cut on October 29, with a final cut anticipated in December [4][10] Tariff Impact - Tariffs are viewed as a temporary tax on imported goods, leading to a one-time price increase that should not prompt the Fed to tighten credit policies [5][6] - The potential shock to consumer spending from tariffs is not expected to lead to a recession, as positive trends in capital spending and AI investments are likely to support earnings [7][10] Data Dependency - The current government shutdown has created a "data desert," prompting a shift towards utilizing more private sector data sources for economic analysis [7][9] - There is a call for increased reliance on private data sources to reduce dependency on government statistics, which may enhance the accuracy of economic assessments [9][10]