Senate Advances Deal to End 40-Day Government Shutdown
After tense late-night negotiations, the Senate narrowly advanced a measure to end the 40-day U.S. government shutdown, passing with exactly 60 votes. The agreement funds federal operations through January and guarantees a December vote on extending Affordable Care Act tax credits, though the extension itself was not included in the current package. All job layoffs during the shutdown will be reversed, and federal employees will receive full back pay, while essential programs like SNAP are funded through September. Although the deal drew bipartisan support, several lawmakers, including Senate Minority Leader Chuck Schumer and Sen. Bernie Sanders, opposed it for not immediately reinstating ACA subsidies.
Private Payrolls Rebound in October but Small Businesses Struggle
Private employers added 42,000 jobs in October, marking a modest rebound after September’s decline. Large companies accounted for nearly all of the gains, while small businesses shed 34,000 positions, underscoring persistent challenges for smaller employers. Wage growth held steady, up 4.5% for job stayers and 6.7% for job switchers, signaling a labor market that remains resilient but not overheated. The Federal Reserve continues to monitor labor softness even as it moves forward with rate cuts aimed at supporting growth.
Amazon Leads Retail Price Hikes as Tariffs Add Pressure
According to new data, Amazon raised prices an average of 12.8% this year, more than double the increases seen at Walmart or Target. The hikes were steepest in apparel, home goods, and beauty, driven by cost pressures from Trump administration tariffs. Analysts note Amazon’s heavy reliance on third-party sellers leaves it more exposed to tariff-related costs, which are being passed to consumers. Economists warn that these price increases could temper holiday spending and contribute to broader inflation in the months ahead.
Looking Ahead
Markets will be watching next week’s inflation and consumer sentiment data for additional insight into price pressures and consumer strength heading into the holiday season.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
