Market Appetite Cooling Amidst U.S. Government Shutdown Uncertainty

The current market landscape is characterized by reduced risk appetite due to the ongoing U.S. government shutdown, a cooling labor market reflected in private sector employment reports, and growing concerns about the future of AI valuations. Key events this week will center around updates on the government shutdown and potential interest rate adjustments by the Federal Reserve. Delays in economic data releases are also expected with the prolonged closure.