The US government entered its first shutdown in nearly seven years overnight, after Congress failed to agree on a funding deal. Around 750,000 federal employees face furloughs, key public services will be cut, and the economy could suffer billions in lost output. The impasse stems from a partisan clash over healthcare subsidies and Medicaid cuts. Market reaction was muted: the S&P 500 dipped 0.4%, Treasury yields fell, and gold rose to a record $3,895. While disruptive, shutdowns tend to be temporary and largely political. Historically, markets recover quickly once resolved. For now, this does not materially alter interest rate expectations, company earnings or the broader US economic outlook which are the key drivers of U.S. performance this year.