Thursday, 2 October 2025 Reading time : 3 minutes

Numerous US government agencies have scaled back their services in recent days as Republicans and Democrats have so far been unable to agree on the government budget. Despite the recent political upheaval, sentiment on Wall Street remains positive, with the S&P 500 closing at a new record high of 6,711.20 points at the start of the month.

However, the shutdown is affecting not only public administration but also the financial markets. Important economic data, which is usually published by government agencies, will likely be available only to a limited extent in the meantime. According to Reuters, the Bureau of Labor Statistics and the Bureau of Economic Analysis have announced that they will suspend the collection and publication of economic data in the event of a government shutdown. This includes data on the labour market, inflation trends, and consumer spending in the United States. It is unclear how long the deadlock will last. The longest shutdown to date lasted 35 days and occurred during Trump's first term at the turn of 2018/2019.

In the absence of data, the upcoming earnings season will be particularly important, as it will provide insight into Corporate America's business performance in the past quarter. Financial giants will present their results on 14 and 15 October, including JPMorgan Chase, Wells Fargo, Goldman Sachs, Citigroup and Bank of America.

The sector has performed well over the course of the year. As such, the S&P 500 Banks Index has gained more than 23% since the beginning of the year (as of 1 October 2025, including dividends), outperforming the overall market which has risen by 15.2% over the same period.

Reverse Convertible on US Banks
12.10% p.a. BRC on Bank of America, Citigroup, Wells Fargo
Barrier: 69%
Valor: 149 280 936

Indicative terms

 

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