Key Takeaways
- The US government shutdown delays economic reports, shifting investor focus and influencing Fed rate expectations.
- Treasury Secretary Scott Bessent anticipates a major breakthrough in forthcoming US-China trade negotiations.
- Boeing's 777X commercial debut is delayed to early 2027, potentially incurring billions in accounting charges.
- FICO shares surged 18% following a new program allowing mortgage lenders direct access to credit scores.
Deep Dive
- The Senate is expected to vote on a stopgap spending bill to reopen the government into mid-November.
- President Trump threatens job cuts, potentially thousands, at federal agencies not aligned with his agenda.
- The government shutdown will delay Friday's jobs report, making investors reliant on private data for economic outlook.
- Private data like ADP employment and ISM manufacturing suggest weak September hiring, which could prompt Federal Reserve rate cuts.
- Treasury Secretary Scott Bessent predicted a ".pretty big breakthrough." in the next round of trade talks with China.
- Talks are set to occur before the scheduled November 10 expiration of the highest tariff levels truce.
- China has halted buying US soybeans, utilizing the import ban as a bargaining chip in negotiations.
- Support for American farmers, particularly in the soybean sector, is anticipated next Tuesday.
- Discussion centers on a Senate vote regarding a stopgap spending bill to end the government shutdown.
- Senators from Maryland and Virginia may exert pressure to negotiate healthcare matters separately.
- There is a recognized risk that Republicans might push too far with government layoff tactics.
- Such tactics could potentially worsen the situation and hinder full-year spending negotiations.