Equities closed the day lower for the third time in a row, following Thursday’s sharp rally that helped erase Monday’s sell-off. 

Concerns around the Evergrande and property developer situation in China remain but have simmered from the boil that sparked early-week volatility. 

Overseas markets moved the opposite direction, with European and Asian markets lower. 

The bond market has been on the move as well, with 10-year Treasury yields jumping above 1.4% for the first time in more than two months, spurred by this week’s Fed meeting that revealed the central bank’s intentions to reduce bond purchases in the coming months.

The market is keeping one eye on Washington as the September 30 deadline for a government spending bill approaches. 

Policymakers appear poised to work over the weekend to hash out details on the $3.5 trillion bill as well as a possible $1 trillion infrastructure program. 

The latter looks to have some bipartisan support, but it is suspected spending negotiations will be contentious given the likelihood of political positioning ahead of midterm elections. 

There’s certainly potential for a coming government shutdown if agreement can’t be reached on the debt ceiling. 

While this is not a new issue for the market, it does raise the possibility of some near-term political anxiety for the markets.

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