Oct. 1 at 7:55 PM
Government Shutdown Creates Data Gap Ahead of Bank Earnings
The U.S. government shutdown has halted federal economic data releases, leaving investors in an information vacuum before the third-quarter earnings season. Key readings on jobs, inflation, and retail sales from agencies like the Bureau of Labor Statistics and Census Bureau are paused, while private-sector and Fed data continue.
Financial-sector profits, which contributed 13.8% to the S&P 500’s Q2 earnings, are expected to rise to 25% in Q3. Banks including Goldman Sachs, Citigroup, Morgan Stanley, and JP Morgan Chase will kick off earnings reporting on Oct. 14, amid a
$1.26 trillion merger boom.
The S&P 500 Banks Index is up 22% YTD, outpacing the broader market but trading at 13.2x forward earnings. Online brokers and trading platforms could also benefit from post-Covid retail trading activity, though valuations remain high.
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