Morning Business Report: Budget deal eases shutdown fears as markets slide

Senate Democrats have reached a deal with Republicans and the White House to pass five spending bills, funding a large portion of the federal government for the remainder of the fiscal year.

(LILAMAX)- Senate Democrats have reached a deal with Republicans and the White House to pass five spending bills, funding a large portion of the federal government for the remainder of the fiscal year. The agreement helps avert another potential government shutdown—an outcome that has been weighing on Wall Street amid concerns it could curb spending and slow an economy that has recently shown signs of strengthening.

Despite those worries, consumer spending remains resilient. Earnings from Visa and Mastercard show Americans are still swiping their cards at a steady pace. Analysts say that could be driven by a strong stock market making consumers feel wealthier, or, in some cases, households leaning more heavily on credit cards to cover everyday essentials.

Markets, however, moved lower Thursday after Microsoft weighed on sentiment. All three major U.S. indexes finished the day in the red as investors digested corporate updates and broader economic signals.

Meanwhile, nationwide activists are calling for an “economic blackout” today to protest ICE activity. Organizers are urging people to refrain from going to work, attending school, or shopping. A website promoting what it calls a “national shutdown” lists hundreds of organizations as endorsers.

In corporate news, Procter & Gamble is rolling out silk diapers—currently available only in China, where silk holds strong cultural significance. With China’s birth rate at a record low, P&G is experimenting with new premium products as it looks for ways to boost diaper sales even as fewer babies are born.