The S&P 500 and the Nasdaq fell on Tuesday as investors grew anxious over a potential U.S. government shutdown, raising uncertainties about the release of critical economic data. This sentiment shift came after a day of gains for equities, highlighting ongoing market sensitivity to any indications of instability.

Analysts note that while historical shutdowns have minimally impacted markets, the current fragile economic backdrop could mean greater disruption this time. Despite this, Eric Teal, chief investment officer at Comerica Wealth Management, suggests that long-term market disruptions are unlikely, though uncertainties in monetary and fiscal policies persist.

Market performance was uneven: communication giants Meta Platforms and Alphabet drove down communication services stocks, whi

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