A Congressional standoff surrounding raising the debt limit led to increased market volatility as a political debate lingered. Impasses regarding the debt ceiling have occurred numerous times since the limit was established in 1917.
An increase in confirmed Delta variant cases globally reignited concerns about reimplementation of quarantines and social distancing restrictions. The rise in newly verified cases come as European countries had started to relax restrictions in place for nearly a year. In the United States, renewed mandates by the Centers For Disease Control & Prevention (CDC) are being criticized by some and welcome by others.
Financial global markets are drawing support from the effectiveness of ongoing vaccinations and improving economic indicators. Consumer sentiment is re-evolving, resulting in rising consumer demand as pandemic worries wane. Pent up demand from the past year is thought to be driving the bulk of economic activity.
With the election over, a lingering uncertainty has been removed as expectations of how fiscal policy and stimulus programs funded by government debt may evolve. Some economists and market analysts project eventual higher taxes along with an expanding fiscal deficit.
Worries regarding a second wave of infections heading into the fall, election uncertainties, and wavering economic indicators contributed to a dubious September.
