The US government shutdown shows no signs of ending, leaving investors and markets in a state of uncertainty.
On Monday, the Senate failed for the fifth time to pass funding bills, prolonging the impasse that has already disrupted government operations and deprived financial markets of critical economic data.
In the view of analysts, the lack of information is making it difficult for the Federal Reserve to assess the true health of the US economy and make informed policy decisions.
Despite the uncertainty, investors are betting that the Fed will cut interest rates later this year.
Current market pricing shows a 25-basis-point reduction likely in October and again in December, with probabilities of 93% and 82% respectively.
The moves reflect investor expectations that the Fed may try to cushion the economy amid rising concerns over growth and spending.
Observers say that while US domestic issues are dominating headlines, international developments in France and Japan could also put pressure on markets and investor sentiment.
With the shutdown continuing and global political risks rising, analysts warn of a period of heightened market volatility.
