What Happened?

A number of stocks fell in the afternoon session after the U.S. government hurtled toward a potential shutdown, sparking economic uncertainty and weighing on investor confidence. 

Market volatility increased as a partisan standoff pushed the federal government closer to a shutdown. If lawmakers fail to reach a spending agreement, a shutdown would begin, furloughing thousands of federal workers. This prospect has weighed on investor sentiment, creating a 'risk-off' mood in the markets as traders brace for potential economic disruption. The political uncertainty adds a layer of caution for investors heading into the final day of the month. 

Adding to the weakness, a key report showed U.S. consumer confidence unexpectedly fell to a five-month low in September. The Conference Board's consumer confidence index slid to 94.2, a steeper drop than analysts had anticipated and its lowest reading since April. This downturn reflects growing pessimism among Americans about inflation and a weakening job market. Consumer confidence is a closely watched economic indicator as it gauges households' willingness to spend. A decline suggests that consumers may pull back on discretionary purchases, such as dining out or shopping for non-essential goods, which could negatively impact the future revenues and profits of companies in these sectors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Investment Banking & Brokerage company Jefferies (NYSE: JEF) fell 2.9%. Is now the time to buy Jefferies? Access our full analysis report here, it’s free.
• Personal Loan company SoFi (NASDAQ: SOFI) fell 4.5%. Is now the time to buy SoFi? Access our full analysis report here, it’s free.
• Asset Management company Carlyle (NASDAQ: CG) fell 4.9%. Is now the time to buy Carlyle? Access our full analysis report here, it’s free.
• Asset Management company Ares (NYSE: ARES) fell 3.8%. Is now the time to buy Ares? Access our full analysis report here, it’s free.
• Credit Card company Synchrony Financial (NYSE: SYF) fell 3.2%. Is now the time to buy Synchrony Financial? Access our full analysis report here, it’s free.

Zooming In On Carlyle (CG)

Carlyle’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Carlyle is up 23.8% since the beginning of the year, but at $62.80 per share, it is still trading 9.4% below its 52-week high of $69.35 from September 2025. Investors who bought $1,000 worth of Carlyle’s shares 5 years ago would now be looking at an investment worth $2,546.

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