Schein: We could see bond yields spike later this week

Government Shutdown Impact - Bond market is expected to react to a government shutdown, potentially leading to increased bond yields due to uncertainty about the Federal Reserve's actions [2] - A prolonged government shutdown could shave approximately 10 basis points off the GDP each week [5] - Historically, markets have shown an average increase of 1% the week before and 4% the week after government shutdowns [6] Market Seasonality and Federal Reserve - Historically, September tends to be a negative month for the S&P 500, but this pattern has not been observed this year, shifting focus to October and the Federal Reserve's actions [7][9] - In years where the market is up 15-20% in the first three quarters, the fourth quarter typically sees returns of around 5-5% [8] - The market is waiting to see what the Federal Reserve actually does in October [9] AI and Technology Stocks - Nvidia is considered a strong player in the AI trade, with potential growth in quantum computing and robotics [11] - The AI trade is still in its early stages, driven by corporate spending on chips to compete for the future [14] - The performance of the Magnificent Seven (Mag7) stocks post-Federal Reserve pause and interest rate cuts is being compared to historical patterns [15]