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Stalemate Deepens as Government Shutdown Hits Historic Length

House Speaker Mike Johnson, joined at left by Rep. Andrew Garbarino, answers questions at a news conference at the Capitol on day 16 of the government shutdown.  The federal government shutdown has now stretched into its 20th day, officially becoming the third-longest in U.S. history. With no breakthrough in sight, the standoff between Democrats and Republicans continues to paralyze Washington. The Senate is scheduled to vote yet again on a funding measure, marking the 11th attempt to end the impasse. However, both sides remain entrenched: Republicans are pushing for a stopgap bill to extend funding at current levels, while Democrats insist on restoring cuts to Medicaid and securing health care subsidies before reopening the government. The shutdown, which began on October 1, has already furloughed hundreds of thousands of federal workers and disrupted key services. If it continues past October 22, it will surpass the 1995-1996 standoff to become the second-longest in U.S. histo...
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Stock Market Today: Rising Treasury Yields Unsettle Investors


In today’s stock market, the Dow Jones Industrial Average (Dow) took the lead in a slide prompted by rising Treasury yields. Investors are grappling with the impact of recent data on interest rates, and the benchmark S&P 500 and Nasdaq Composite also dipped into the red.

Here are the key points:

  1. Treasury Yields Surge: The yield on 5-year Treasurys rose to near four-week highs, while the 10-year yield topped the critical 4.5% level. On Wednesday, the benchmark yield inched up further to trade around 4.57%. These rising yields have raised concerns that the Federal Reserve may keep rates higher for longer.

  2. AI Growth vs. Yield Worries: Despite hopes for AI growth, concerns about bond yields appear to be overshadowing the market. The Nasdaq recently hit a record high following Nvidia’s post-earnings rally, but the surge in yields is causing uncertainty.

  3. Consumer Confidence and Fed Policymaking: Investors are trying to decipher the impact of stronger-than-expected consumer confidence data on Fed policymaking. However, they are bracing for a prolonged wait for any pivot to rate cuts, given the litany of warnings from Fed officials.

  4. Wall Street Strategists’ Views: Wall Street strategists have been closely monitoring rising yields. Michael Kantrowitz, chief investment strategist at Piper Sandler, highlighted that higher rates are now a systemic problem for equities. If the 10-year Treasury yield surpasses 5%, it could spell trouble for most stocks.

  5. Beige Book and Inflation Gauge: The release of the Fed’s Beige Book later today could shed more light on economic conditions. Investors are also awaiting Friday’s reading on PCE (Personal Consumption Expenditures), the central bank’s preferred inflation gauge.

In summary, rising Treasury yields are causing jitters in the stock market, and investors are closely watching Fed signals and economic data. The delicate balance between growth prospects and interest rate concerns remains a focal point for traders.


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