Government Shutdown Ends, but Becomes a “Sell the News” Event

Despite President Trump signing a bill to end the 43-day government shutdown, the longest in U.S. history, the resolution ironically turned into a “good news priced in” moment for markets.

The White House also warned that key inflation and employment data delayed during the shutdown may never be released. The lack of critical data further pushed down expectations for a December Fed rate cut. One month ago, markets priced in a 95% probability of a cut; today, that number has fallen to 50% — essentially a coin flip.