Driven by strong earnings reports from financial giants such as Morgan Stanley and Bank of America, the S&P 500 index rose in shock on Wednesday, while investors continued to pay attention to the latest developments in international trade tensions.

This week¡¯s banking performance opens up the third-quarter earnings report, showing the resilience of large U.S. enterprises and also providing clues to the macroeconomic health.

On October 15, local time, the U.S. Senate, with 51 votes against 44 votes, again failed to advance the Republican Provisional Allocation Act. It is that 60 votes were needed to advance the bill that would fund the government until the end of November.

The U.S. Senate held its eighth vote on the federal provisional funding bill on 14th, with 49 votes in favour and 45 against, less than the 60 votes needed to pass the bill.

Democrats require that the bill include medical-related content before it can be "released"; Republicans insist that Democrats first "give the green light" to the bill. Both sides blamed the government's "shutdown" on each other and both said they would not compromise. Senate Republican Leader Thun said on the 14th that the Democratic Party has made "very expensive demands" and is willing to let the "shutdown""continue for a few more weeks."

Republican Speaker of the U.S. House of Representatives Johnson even said that this may become the longest government "shutdown" in U.S. history.

Trump took a tough attitude in this crisis, and even warned that he would use the "shutdown" to cut government employees and cut off "Democratic projects". He bluntly said at a government meeting last week: "These programs are not popular with Republicans."

Reuters reported on the same day that according to a court document submitted by the U.S. Department of Justice, 4108 government employees have been fired since the federal government's "shutdown" on October 1. Statistics released by the New York Times on the same day showed that in the two weeks since the shutdown, the Trump administration has frozen or cancelled funds for more than 200 projects across the United States, totaling nearly $28 billion. The above-mentioned projects are mainly distributed in states, cities or congressional districts where Democratic members are located, and involve clean energy development, power grid renovation, transportation infrastructure maintenance, etc.

On October 15th, local time, a federal judge in San Francisco, USA, ordered that the Trump administration must stop laying off employees during the government's "shutdown".

October 15th is payday for the US military. According to CCTV International News, citing U.S. media reports on the same day, the U.S. Department of Defense has confirmed that in order to prevent the suspension of military salaries due to the continued "shutdown" of the U.S. federal government, the U.S. Department of Defense has used approximately US$8 billion in research and development funds to pay military salaries.

Government shutdown for half a month still without compromise What are the two parties in the United States fighting?

The U.S. Congress has been unable to pass a provisional appropriations bill due to a dispute between the two parties, causing the U.S. federal government to be suspended for two weeks. On the budget bill, what are the two parties in the United States fighting for? Does the repeated shutdown of the U.S. government over the years indicate that partisan strife in the United States is escalating uncontrollably?

The US government shutdown has entered the third week, the two parties still disagree, and the appearance of the two sides is the dispute is the issue of medical expenditure, in essence, on the idea of governance and social thinking to the deep game is going on.

On the issue of medical spending, the Democratic Party insists on extending Medicaid for low-income groups. At the same time, it must seize the opportunity to partially change the previously passed "big and beautiful" bill, especially the content of Medicaid, and prevent previous cuts, asking the Republican Party to compromise during the government shutdown.

The Republican Party stressed that medical subsidies have been abused and wasted before, so spending must be cut. This also involves a series of issues such as improving the fiscal deficit, and the policy is aligned. At the same time we see in the process of struggle between the two sides, involving medical expenses, and also derived a series of issues such as immigration.

Both parties "throw blame" at each other

Stop the government fighting.

After the opening of the second term, Trump emphasized on the issue of immigration borders that it is his own governing focus, involving social thinking, especially targeting the concept of plural equality and inclusion, in the continuous offensive, the so-called correction, between the two parties has already produced such a corner. and now there is a government shutdown, clearly the two sides do not give up, reflected in the need to use the other side to throw the pot, or that the shutdown has already triggered a new battle between the two parties.

The U.S. government has been "shut down" for two weeks

From the perspective of the Democratic Party, it is believed that the ruling party will bear more pressure and suffer greater losses, so it is directing the fire to the Republican Party. However, the Republican Party has constantly launched an offensive against the Democratic Party on people's livelihood issues, saying that it is precisely because the Democratic Party is uncompromising that the problems are difficult to solve, so a series of problems in people's livelihood are to blame the Democratic Party. At the same time, we have seen the effects that have already been produced, such as large-scale unpaid vacation and even possible subsequent layoffs, which are partially in line with the so-called drastic internal reform after Trump started his second term.

In addition, especially when it comes to immigration issues, what has already occurred is the cancellation of the citizenship ceremony, and the Department of Labor and other departments have been affected in terms of immigration services. However, this may be in line with the U.S. government's intentions and is in line with the current Trump administration's relevant policy needs. Therefore, at this time, both sides each take what they need, and also emphasize their own positions to further highlight their demands and put pressure on the other side.

Beauty is caught in a vicious cycle

Internal diplomacy increases.

The United States is once again trapped in a vicious cycle that will exacerbate the domestic diplomatic trouble of the United States.When the deep problems in the United States exist for a long time, the two parties do not intend to solve the problems fundamentally, but to use these issues to pressure each other and throw the pot to the party dispute, which has caused the US party's polarization to intensify further, while the internal problems of the United States are continuously externalized, exerting more influence on the outside, trying to compensate for this huge deep swing that has already appeared in the country.

Sushi talks about the US government's shutdown

At this time, the subsequent effects of the U.S. government shutdown concerned not only the development of the U.S. economy itself, but also the subsequent effects of the externalization of U.S. domestic affairs, the further reflection of domestic affairs and the subsequent effects on international peace and development.

Institutional issues that led to the shutdown of the US government

The financial management of the federal government of the United States depends on the budget system. The Senate and the House of Representatives of the United States discuss and revise the draft budget proposed by the government, and then submit it to the president for signature after reaching an agreement, which becomes the basis for various expenditures of the federal government.

The U.S. fiscal year usually starts on 1 October each year and ends on 30 September each year. If the previous Congress fails to agree on the budget at the beginning of the fiscal year, it can only be sustained by a temporary allocation bill.

The U.S. Senate failed to pass the new provisional funding bill on September 30 before government funds were exhausted, a major reason for the Republican and Democratic party's stagnation on issues such as health insurance spending.

Budget and appropriation deals front battlefield

Congressional disputes over budgets and allocations are rooted in party disputes.As U.S. political polarization increases, voting on budgets or temporary allocations often becomes a battlefield for the two parties.

Congress disputes on budget and funding

The reason why the two parties can't talk about the budget and appropriation issues is that they "don't want to talk about it". The reason for "not wanting to talk" is to seek the exchange of interests, shirk political responsibility and even "oppose for the sake of opposition".

Government shutdown shocks US economy

The poll became a battlefield between the two parties.

Political disability caused by the shutdown of the federal government will lead to economic disability.

At the macroeconomic level, the shutdown will cause direct losses to the U.S. economy, and some industries will be severely impacted by the shutdown.

At the market level, the shutdown will cause the Bureau of Labor Statistics and other agencies responsible for the release of economic data to stop operating, which may affect the release of key data such as employment reports and inflation.

At the level of personal life, every shutdown will bring a large number of government workers' wage delays and "vacations".

Key inflation data in the United States

Release delayed due to government shutdown

According to Xinhua News Agency's report on October 15th, due to the "shutdown" of the U.S. federal government, the September consumer price index (CPI) report originally scheduled to be released by the U.S. Department of Labor on the 15th was postponed. Earlier, the Ministry of Labor had postponed the September employment data statistics report scheduled to be released on the 3rd of this month. The Bureau of Labor Statistics, part of the Department of Labor, is the official statistical agency of the United States.

As an example of the monthly employment statistics report, the September report is basically completed before the "stop" and can be released after the "stop" ends or sooner, but the collection and processing of October data will be more affected and the delay in release may be longer.

Federal Reserve Chairman Powell said at the annual meeting of the American Association for Business Economics held in Philadelphia on the 14th that the Federal Reserve now evaluates the U.S. economic situation through economic data compiled by private institutions, but these channels cannot replace government statistics.

"The Fed will not have access to relevant data, especially for October." Powell said. "If the'shutdown 'lasts for a while, the situation will become more challenging." He said that the Fed is already in a difficult situation, and its two major policy goals are almost contradictory to boost employment and stabilize inflation.

Generally speaking, high inflation requires the Fed to keep interest rates high, and a slowing job market will push it to lower them. Data released by the Department of Labor in September showed that the number of non-farm payrolls in the United States increased by only 22,000 in August, a sharp drop from the revised 79,000 in July and far lower than market expectations; The consumer price index rose 2.9% year-on-year in August, the largest increase since January this year, and still higher than the Fed's long-term target of 2%.

The next meeting of the Federal Open Market Commissioner (FOMC) is scheduled to take place on 28-29 October, and the market generally expects that the Fed will cut interest rates again by 25 basis points after announcing a 25 basis point interest rate cut on 17 September, given the continued weakness of the U.S. job market.

Great stock closure: three major stocks down.

Gold and oil prices rise.

As of the close of Eastern Time on Wednesday, the Dow fell 17.15 points, or 0.04% to 46,253.31 points; the Nasdaq index rose 148.38 points, or 0.66% to 22,670.08 points; the S & P 500 index rose 26.75 points, or 0.40% to 6,671.06 points.

Three major shares fall.

Seven of the eleven plates of SP500 rose, with real estate plates leading up by 1.5%; utility plates followed by 1.29%.

The majority of large science and technology stocks rose, and the AI leader NVIDIA rose by 2.7%, the end turn green, falling by 0.1%, highlighting the intensity of the high level of capital.

Tesla rose 1.38 per cent, Amazon fell 0.38 per cent, Apple rose 0.63 per cent, Google A rose 2.27 per cent, and Meta rose 1.26 per cent. Chip giant AMD surged 9.4%According to Xinhua news agency, on October 6, local time, OpenAl announced a cooperation agreement with AMD, will deploy a total of 6GW of AMD GPU computing power, worth up to tens of billions of dollars.

Most large technology stocks rose

Morgan Stanley Stock Surges 4.7% to Record High; Bank of America rose 4.4%, and the third-quarter earnings of both major banks exceeded expectations, mainly benefiting from the recovery of investment banking business. The move comes a day after Goldman Sachs and JPMorgan Chase also reported strong investment banking results and expected continued growth in the business.

Storage concept stocks strengthened again, SanDisk rose more than 13%, Western Digital rose 6.5%, Seagate Technology rose 3.7%, and Micron Technology rose 2.6%.

Asmai shares rose 2.7%. The lithography giant's third-quarter orders and revenue exceeded expectations, and it expects total net sales for the whole year to increase by about 15% year-on-year, with a gross profit margin of about 52%.

Omero Pharmaceuticals jumped 154 percent, and Inno and Nord will acquire from the company a drug that is being developed to treat rare blood and kidney diseases for as much as $2.1 billion.

The Nasdaq China Golden Dragon Index closed up 1.7%, most popular Chinese concept stocks rose, New Oriental rose more than 10%, 21Vianet rose more than 4%, Bilibili rose more than 2%, Alibaba, Xiaopeng Motors, Baidu, JD.com rose more than 1%, iQiyi fell more than 3%.

The majority increased.

In late trading in New York on Wednesday (October 15) (04:59 Beijing time on Thursday), the offshore RMB (CNH) was trading at 7.1298 yuan against the US dollar, up 104 points from late trading in New York on Tuesday. The overall trading volume during the day was between 7.1433 and 7.1247 yuan range.

The FTSE A50 futures index closed down 0.16% in consecutive nights at 14962 points.

As of press time, international spot gold rose 0.15% to US$4,213.06;COMEX gold futures rose 0.5% to US$4,222.4/ounce, and COMEX silver futures closed up 1.92% to US$52.365/ounce.

Overview of Precious Metals Trend

As of press time, WTI crude oil futures rose US $0.45, or 0.78%, to US $58.29 per barrel; Brent crude oil futures rose $0.54, or 0.87%, to $62.45 a barrel.

As of press time, WTI crude oil futures rose US$0.45

(Declaration: The contents and data of the article are for reference only and do not constitute investment advice.

Edited | | |by DuPont

School of Chen Zhang.

Cover photo source: Elephant News quoted Associated Press

Daily economic news is synthesized from CCTV News, CCTV International News, Xinhua News Agency, Financial Associated Press, public information