The return of economic reports closely watched by investors is near, after lawmakers in Washington reached a deal to reopen the U.S. government. Both chambers of Congress passed a spending package this week, ending the longest government shutdown in history. The shutdown, which triggered agency furloughs and flight cancellations, could negatively affect growth in the fourth quarter. Consumers grew increasingly pessimistic about the economy in early November, exhibiting angst amid the shutdown. The University of Michigan’s consumer sentiment index dropped to its lowest level since the summer of 2022, a survey published last Friday showed. The National Retail Federation estimated that sales will grow 3.7% to 4.2% year-over-year during the 2025 holiday season in the U.S., compared with a 4.3% increase last year, noting that consumers appear cautious but willing to spend.

Meanwhile, with more tech giants set to report quarterly earnings this month, investors continue to weigh AI’s impact on future profits and potential market risks that could emerge from the current spending spree. Among hyperscalers, spreads reached their widest mark since April, according to data published by the Financial Times on Tuesday. This indicates that investors have sought a higher premium to hold debt issued by the companies spending heavily on digital infrastructure.

PGIM’s 2025 Global Risk Report explores underappreciated risks to portfolios as the future of AI infrastructure, energy, and global trade takes shape.