U.S. Stocks Slip Amid Looming Government Shutdown Concerns

U.S. stocks experienced modest declines amid growing concerns over a potential government shutdown as lawmakers struggled to pass funding legislation by the impending deadline. President Donald Trump and congressional leaders met in a last-ditch effort to avert the shutdown, but tensions between Democrats and Republicans, particularly over the inclusion of enhanced Obamacare tax credits, have increased the risk of a stalemate. Market jitters were further fueled by worries over disruptions to the release of key economic data, such as the upcoming jobs report, which could hinder Federal Reserve decision-making on interest rates. Despite some rallies in AI chip stocks and healthcare sectors, major indices including the Dow, S&P 500, and Nasdaq showed weakness, with technology giants like Meta and Alphabet among the decliners. Analysts caution that while past shutdowns have had limited economic impact, the current fragile economy and inflation challenges could amplify the effects, potentially slowing GDP growth. Overall, the market remains cautious as investors weigh the implications of the shutdown amid an already sensitive economic backdrop.