SEC Partial Shutdown Deepens Market Uncertainty

The U.S. federal government shutdown has extended into a second week amid a partisan impasse, with lawmakers eyeing Oct. 15 as a critical deadline for military pay and Democrats pushing soon-to-expire health-subsidy fixes while Republicans insist on passing a House stopgap first. The Securities and Exchange Commission has partially shut down after the funding lapse, pausing routine approvals, enforcement and registration reviews and leaving retail CFD traders and prospective crypto-linked ETF approvals in limbo. Markets have so far shown resilience, trading near record highs, but investors are bracing for potential earnings-season turbulence and a data drought that could complicate the Federal Reserve’s policy outlook. Safe-haven and risk assets are diverging—gold and bitcoin have hit new highs while oil rallied—prompting traders to reassess leverage and consider crypto as a hedge amid growing uncertainty. International developments, notably Sanae Takaichi’s victory in the LDP leadership contest in Japan, have also moved markets by boosting Japanese stocks and lifting the dollar/yen. With Congress dug in and economic data flow at risk, market participants remain cautious and focused on risk management until funding and earnings clarity returns.