Government Shutdown Odds Increase as Dow Jones Falls; Tesla Deliveries Expected


Dow Jones futures are set to open on Sunday night, alongside S&P 500 futures and Nasdaq futures, suggesting that there will likely be a government shutdown over the weekend. The House rejected a stopgap spending bill, which increases the likelihood of a shutdown. Additionally, Tesla is set to report its third-quarter production and delivery figures on Monday, with analysts rushing to adjust their forecasts in recent days. Other electric vehicle companies, such as Nio, Li Auto, and XPeng, will also release their September and third-quarter sales figures on Sunday. The potential government shutdown and uncertainty surrounding Tesla’s deliveries are impacting the stock market rally attempt, making investors cautious about adding exposure until there is confirmation of a new uptrend.

A federal government shutdown on Sunday, October 1 seems increasingly likely as the GOP-led House and Democrat-led Senate are at odds on spending bills. The House rejected a short-term funding bill, indicating a struggle for an eventual deal. If there is no agreement, up to 3.5 million government workers would not receive pay, and key economic data, including the September jobs report, would not be released. While a short shutdown would have little impact, a lengthy shutdown could have significant implications. The fear of a government shutdown was one of the reasons for the market gains on Friday fading.

The stock market rally attempt has been lackluster since midweek, with the Dow Jones being the weakest. A follow-through day is needed to confirm the new uptrend, and investors should be cautious about adding exposure until then. Tesla’s upcoming report on deliveries and production numbers for the third quarter has led to analysts lowering their forecasts. Other electric vehicle companies such as Nio, Li Auto, XPeng, and BYD are also releasing their sales figures. The potential government shutdown and uncertainties in the electric vehicle market are impacting the stock market’s performance, leading to cautiousness among investors.

Source link

Share post:




More like this

Discover 6 games inspired by Fallout in the thrilling Fallout Show experience.

The buzz surrounding Amazon's live-action Fallout show has fans...

Powerball addresses $1.3 billion jackpot delay, no longer revealing state information in 13 words.

The highly anticipated Powerball drawing on April 6 with...

Maine officer charged with lying about taking missing person to hospital sparks search effort.

A Maine police officer in Washburn is facing multiple...

Local bank branches are also aiming big with AI technology, not just Wall Street.

The banking industry is undergoing a transformative shift as...