Hopes for a last-minute deal to avoid a government shutdown are fading, raising the prospect of delays to key economic data as the Federal Reserve considers its next rate move.
Stocks were lower Tuesday following slightly weaker-than-expected consumer confidence data. Meanwhile, the U.S. dollar extended declines, and gold futures hit another record high before falling back.
A prolonged shutdown could also delay the release of the consumer-price index due in mid-October.
“It’s even possible that the Fed might not have contemporaneous data going into their next meeting” starting on Oct. 28, Deutsche Bank analyst Jim Reid said. Still, he noted that only a handful of shutdowns have lasted more than a couple of weeks.
Late Monday, President Trump moved to impose tariffs on lumber, kitchen cabinets and some furniture products, setting rates that will initially be less punishing than what he indicated last week. The levies are due to start Oct. 14.
Oil futures extended Monday’s declines on expectations of increased OPEC+ supply.
Treasury yields edged lower, with the 10-year yield hovering around 4.12%.
Pfizer shares climbed after the Journal reported that CEO Albert Bourla would appear at the White House Tuesday to announce a plan to lower drug costs.