With the U.S. government shutdown dragging on and renewed concerns over tariffs, the stock market is bracing for a turbulent stretch.
According to Dow Jones market data, the upcoming week will mark the start of third-quarter earnings season for some of Wall Street’s biggest banks — a development that could help steer market sentiment amid the lack of federal economic data caused by the shutdown.
The S&P 500 is on track for its weakest shutdown performance since 1990, slipping roughly 2% since the start of October. Investor nerves were further rattled after President Donald Trump warned of a “massive increase” in tariffs on Chinese imports, wiping out earlier weekly gains, Dow Jones data shows.
Because of the shutdown, key government reports have been delayed — including the Bureau of Labor Statistics’ monthly jobs report, which was due in early October. Inflation data from the consumer-price index, originally expected this week, has also been pushed back to October 24, according to MarketWatch.
Major financial institutions — including JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Citigroup (NYSE: C), and Goldman Sachs (NYSE: GS) — are set to report earnings on Tuesday, followed by Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) on Wednesday. Analysts expect these results to provide critical clues about the economy’s strength and the health of the banking sector.
With Washington gridlock stalling economic data and tariff risks back in focus, investors are looking to corporate earnings for direction. The performance of these banks could determine whether markets regain their footing or continue to struggle in the weeks ahead.
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