A U.S. government shutdown could spook investors and is the biggest threat to the stock market rally, according to Nobel prize-winning economist Joseph Stiglitz.
Politicians are facing a Friday deadline to agree a new spending bill and avert a shutdown. President Donald Trump blew up negotiations on a potential immigration deal last week, pushing Republicans and Democrats to harden their positions and raising the risks that the standoff will sink the budget talks.
"The most significant political risk is the United States," Stiglitz said in a telephone interview. "Uncertainty is bad for the global economy. And among the uncertainties are these government shutdowns, which would be probably very bad for the markets."