Lower-Income Individuals 'Already in Recession,' Says Atwater

Peter Atwater, president of Financial Insyghts, said that the biggest division is America is not on the left and right, it's up and down between those at the top and bottom of the US economy. For those at the top, the economy looks good and they are 'spending like there's no tomorrow.' But Atwater says Americans on the bottom are already facing recession conditions, as people struggle with affordability. Wall Street traders drove most stocks higher and bond yields lower as House lawmakers were poised to end a historic government shutdown, unlocking access to economic data that will be key in shaping the Federal Reserve policy outlook. The resolution of the last four US closures has spurred gains in the S&P 500 and most of its sectors, based on the median performance. While about 320 shares in the equity benchmark rose on Wednesday, a slide in big tech left the gauge wavering. The Dow Jones Industrial Average climbed for a fourth straight day, hitting all-time highs. Bitcoin erased its advance. Treasuries saw a drop in yields on bets the Fed will have room to cut rates next month to prop up the jobs market. Reports on unemployment and the consumer price index for October are unlikely to be released due to the shutdown, White House Press Secretary Karoline Leavitt said. House Speaker Mike Johnson said he believes the legislation, a hard-fought compromise forged in the Senate and blessed by President Donald Trump, will pass quickly. But he’ll have to keep his fractious party in line in the face of stiff opposition from House Democrats whose leaders are urging them to vote against the legislation. With the government shutdown delaying key economic data, the real challenge isn’t the short-term drag on growth — it’s the increasing difficulty for investors and the Fed to gauge the economic outlook, noted Seema Shah at Principal Asset Management.  “As data releases resume, the case for a Fed rate cut in December should re-emerge, reinforcing a risk-on backdrop, she said. “This environment favors US equities, particularly big tech and cyclicals poised to benefit from a more accommodative Fed stance.” The S&P 500 hovered near 6,850. A gauge of tech megacaps lost 1.2%. The yield on 10-year Treasuries slid five basis points to 4.06%. The dollar wavered. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake