On October 14th, local time, the U.S. federal government's "shutdown" entered its 14th day, and its impact continued to spread across the United States.
As a result of the crisis, part of the U.S. federal government’s function was stagnant, travel, education, culture, technology, and even defense were affected, and some agencies even experienced management chaos. The White House Administration and Budget Office said that it would continue to cut federal staff during the government’s “stop”.
Three major indices rose, and three major indices fell.The Dow index fell more than 1%, the closing increased by 0.44%, the closing fell by more than 2%, the closing fell by 0.76%, the SPP 500 index fell by 1.45%, and the closing fell by 0.16%.
NVIDIA market value evaporated over $200 billion
The average drops.
The majority of major technology stocks fell, Bolt fell over 3%, Tesla, Amazon fell over 1%. Semiconductor, cryptocurrency reserves concept shares fell ahead, Intel fell over 4%, Strategy, Coinbase fell over 4%, Sunlight Semiconductor fell over 3%, Microsystems Technology, Arm fell over 2%. Rare-earth concept, aviation services, infrastructure operations plateau rose, Jet Blue Airways rose 8%, Caterpillar, Delta Air Lines rose over 4%, American Airlines rose over 3%.
Nvidia $180.03, falling 4.40%, and market value evaporated $2014 billion overnight (approximately RMB 143,78 billion).
The Nasdaq China Gold Range Index fell by 1.95%, the popular Alibaba stock fell generally, falling more than 5%, falling more than 4%, falling more than 3%, century connectivity, Alibaba, Zhengzhou car fell by more than 2%.
The FTSE A50 futures index closed up 0.38% in consecutive night trading at 14779 points.
COMEX gold futures rose 0.64 percent, $4159.6 per ounce; COMEX silver futures fell 0.17 percent, $50.345 per ounce.
WTI crude oil futures fell by 1.33%, $58.70/barrel. Brent crude oil futures fell by 1.47%, $62.39/barrel.
Powell suggests this month or interest rate cuts
The Fed expects to drop twice by the end of the year.
In the last public speech on economic and monetary policy before the Fed meeting at the end of this month, the FedThe PresidentPowell suggests that the U.S. labor market continues to deteriorate.Despite the government shutdown affecting the judgment on the economy, there is still the possibility of interest rate cuts this month.。He also said,The Fed may stop cutting the balance sheet in the coming months, the quantitative austerity (QT) action。
In a prepared speech, Powell, who attended this year's annual meeting of the National Association of Business Economics (NABE), said that the employment and inflation outlook in the United States have not changed much in nearly a month since the Federal Reserve's decision-making meeting last month. While some important economic data has been delayed due to the U.S. federal government shutdown, he said, "Based on the data we have, it's fair to say that the outlook for employment and inflation doesn't appear to have changed much since our September meeting four weeks ago."
Immediately afterwards, Powell pointed out that the data before the government shutdown indicated that economic growth may be slightly more solid than expected.unemploymentThe rate remained low in August, with wage growth slowing sharply, possibly partly due to a decrease in immigration and a decrease in labour participation that slowed labour growth.
Powell expects thatThe Federal Reserve may stop shrinking its balance sheet in the next few months。 In his speech, he said that the Fed's long-standing plan is to stop action when reserves are slightly higher than the level the Fed judges to be adequate.
Asked about the impact of artificial intelligence (AI), Powell quoted Nobel laureate in economics Robert Solow as saying about how new technologies will affect productivity: “You can see computers anywhere, but not in productivity statistics.”
In addition, according to media reports,Federal Reserve Governor Bowman said,Continue to expect two more rate cuts before the end of this year。
John Williams, a member of the Federal Reserve Committee on Monetary Policy (FOMC), and the governor of the Federal Reserve Bank of New York, made it clear in an interview with the New York Times that he supports further interest rate cuts this year to address the risks of a sharp slowdown in the labour market.
In an interview, Williams said: “The risk of a further slowdown in the labour market is something I am very concerned about.” he detailed his assessment of the Federal Reserve’s current job market situation.unemploymentThe rate has risen just a few tenths of a percentage point, but job vacancies have continued to decline, and the departure rate has also dropped to a lower level and we have seen the job market gradually warming over the past year, but this warming has not raised concerns about an imminent recession or sharp slowing,” Williams said.
In terms of inflation, Williams believes that tariffs have actually pushed up import commodity prices and had a direct impact on overall inflation, but the impact is smaller and more dispersed than previously expected. He estimates that tariffs have raised inflation by 0.25 to 0.5 percentage points and that tariffs have generally been stable at a higher level, but I think that eliminates some risks of inflation upwards. ”Williams said that basic inflation seems to be gradually approaching the 2% target and the improvement in housing costs is evident.
Williams stressed that he did not see signs of tariffs having a double or amplified effect on inflation. Inflation expectations remained stable and supply chain indicators were basically at a normal level. He believed that this would help reduce service industry inflation as labour markets ceased to increase inflation pressure and wage growth slowed.
Speaker of the US House of Representatives: May become the longest "shutdown" in history
Trump: Many people will be laid off
As the U.S. federal government “stoppered” into its 13th day, Republican House Senator Johnson issued a warning:This could become the longest-lasting government "shutdown" in American history。
Jeffries, the Democratic leader of the House of Representatives, threw the "pot" to the Republican Party in an interview with Microsoft-NBC, sayingIt is precisely because Republicans have effectively suspended the House for several weeks that the two parties are now unable to engage in meaningful consultations。
Due to severe opposition between the two parties in health insurance-related welfare spending, the U.S. Senate failed to pass a new provisional allocation bill before the end of the previous fiscal year on September 30, leading to the exhaustion of funds for the federal government to maintain normal operation, which "stopped" on October 1.
Federal officials, including thousands of representative assistants, are expected to celebrate payday at the end of October, plus November 1 as the start of registration for health insurance programs that triggered the “stop-down”, both factors that will put pressure on both parties in Congress or help end the round of “stop-down”.
This round of "stop-ups" was accompanied by massive federal government cuts. On the 10th, more than 4,000 federal employees received notice of dismissal. U.S. Vice President Watson on the 12th pressured further, saying federal agencies would welcome "painful" cuts, all to blame the Democrats.US President and Republican Trump said thatIt was the "lockout" initiated by Democrats, so they should be laid off first, "many people will be laid off"。
U.S. Treasury Secretary: Secure the army and stop paying other civil servants
American Civil Servants: No money to refuel, unable to pay childcare fees
The Jet Propulsion Laboratory, a research and development arm under NASA, announced on the 13th that it will lay off about 550 people this week, accounting for more than 10% of its total employees.According to U.S. media reports, the Ministry of Education was also hit in the "stop" and a large number of projects such as special education were affected.
According to U.S. media reports on December 12, during the "stop" of the U.S. federal government,Hundreds of employees of the U.S. Centers for Disease Control and Prevention received wrong layoff notices on the evening of 10th, once fell into the dilemma of "being fired". However, the American Federation of Government Employees said that of the approximately 0 employees who received notices, about 0 have been reinstated,But about 600 jobs remain cut。Officials from the U.S. Department of Health and Human Services said the cause of the incident was a technical error. A former employee of the Centers for Disease Control and Prevention bluntly said that the incident was "purely management incompetence."
According to the American Smithsonian Society,The FlagDozens of museums, research centers and national zoosSince the 12th, all closures have been closed due to the government's "shutdown"。
It is also reported that the shortage of air traffic controllers in the United States continues to intensify, resulting inFlight delays are getting worseon the 12th,Nearly 8,000 flights have been delayed and more than 270 flights have been cancelled.。
Transportation Security Agency employee Palmer, who was forced to suspend paid leave, said their morality is now very low.We discussed that there was no money for fuel, we could not pay for childcare, we could not pay for daily expenses, we could not get the child to eat.”。
US officers and soldiers face the risk of being deprived of pay.On 15th, the U.S. Army Pay Day, Trump ordered Defense Secretary Hegerseth to use "all available funds" to pay the U.S. Army.The Pentagon says it will urgently allocate $8 billion from the remaining funds in research and development funds to meet urgent needsHowever, according to US media reports, transferring special funds approved by Congress for other purposes or putting the Trump administration at risk of litigation.。
US Treasury Secretary Basent revealed on the 13th thatIn order to secure the deployment of the army, the federal government had to suspend paying wages to other federal employees.At the same time,Farmers subsidies and small business loans have also been delayed or postponed.。Besent said that the federal government had to recoordinate project spending across the country, and "the situation is getting worse." This round of "shutdown" has "begun to affect the U.S. real economy."
TRUMP:
U.S. Navy Sinking Drug Trafficking Ship Kills Six
Although the U.S. government is "shutting down", the U.S. military's foreign operations have not stopped.
According to Xinhua News Agency, US President Trump posted on social media on the 14th that,The U.S. military sank a "drug trafficking ship" in international waters off the coast of Venezuela, killing six people on board。
Since September,For the fifth time, the Trump administration has announced military action against “drug trafficking vessels” in international waters off Venezuela’s overseas, claiming to have destroyed five so-called “drug ships” and killed 27 “drug traffickers.”。
Trump said in the post that intelligence confirmed that the sunken ship at the time of the incident was trafficking drugs near the coast of Venezuela and was linked to the "illegal drug terrorist network". He called the deceased "drug terrorists", but did not specify which drug trafficking group they belonged to.
Earlier this month, the Trump administration submitted a memorandum to Congress, saying that the United States and drug trafficking groups identified by the United States as terrorist organizations are "in a non-international armed conflict". The memo did not specify which drug cartels were involved, nor did it explain how individual targets could be identified as drug cartel members. Several Democrats in the U.S. Congress accused the Trump administration of abusing its power by using the military to crack down on drug cartels, and did not provide "any credible legal basis, evidence or intelligence".
Venezuelan President Maduro has repeatedly accused the United States of intent on regime change in Venezuela through military threats and military expansion in Latin America.
(Declaration: Article content and data are for reference only and do not constitute investment advice.
Edited|||Duan Lian Du Bo
proofreading|He Xiaotao