Don’t forget: US also faces a government showdown

With markets in turmoil, it's easy to overlook the growing risk of a U.S. government shutdown.

A three-week market sell-off intensified today as investors worry that unpredictable policies from the Trump administration are pushing the economy into recession.

The S&P 500 is down 9.1% from its February high, the Nasdaq 14%, and the Russell 2000 18%. A 10% decline is considered a correction.

Bitcoin also dropped below $80,000, while the USD and gold are seeing some weakness.

Meanwhile, Lawmakers have until Friday, March 14, to pass a funding bill. But House Republicans must secure near-unanimous support.

The longest shutdown in history lasted 34 days in 2018 over Trump border wall funding. Now, Democrats again hold key leverage. While Republicans have a House majority, they need Democratic support in the Senate to pass funding. Some see this as a rare chance for Senate Democrats to challenge Trump’s/ Elon Musk’s cuts via the Department of Government Efficiency, though it’s unclear if they will take that risk.