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Shutdown fears loom over Wall Street after McCarthy ouster on October 4, 2023 at 9:24 pm Business News | The Hill

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The war within the House GOP has thrown another wrench into financial markets. 

Wall Street experts say the political dysfunction behind Speaker Kevin McCarthy’s (R-Calif.) ouster poses new risks at a time of already heightened fears, as the Federal Reserve walks a careful line in its efforts to tamp down inflation. 

Skyrocketing bond yields and turmoil in oil markets are also drumming up fears of a recession, giving investors plenty to worry about in the months ahead.

“Yields and oil are the big stories. Those have the biggest economic consequences. And they’re coming at a time when the economy’s especially fragile,” said Callie Cox, U.S. investment analyst at eToro, in a Wednesday interview.

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“But these political headlines aren’t helping things and they probably are making investors more jittery, even though the economic impacts are more, are likely to be more limited.”

The Dow Jones gained 127 points on Wednesday, rising 0.38 percent, while the S&P 500 rose 0.81 percent and the Nasdaq rose 1.35 percent. Those gains came after a steady decline in stocks in recent days and weeks, including a 400-point drop for the Dow on Tuesday.

That followed an ugly September for markets as lawmakers came within hours of allowing the government to shut down over the weekend.

While Congress ultimately managed to pass a short-term stopgap measure, the shutdown threat continues to loom large. The stopgap bill, also known as a continuing resolution (CR), only runs through Nov. 17, giving lawmakers a matter of weeks to reach a new deal on government funding. 

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Now, the House faces the added obstacle of electing a new Speaker before it can move forward with the spending battle.

“The selection process to choose a new Speaker will further delay work on the individual appropriations bills so Congress will be faced with a choice (again) of passing another CR or shutting down the government,” Brian Gardner, chief Washington Policy Strategist at Stifel Investment Bank, said in a statement.

“A new Speaker could face the same problem that faced McCarthy — a small group of House Republicans who have leverage and are willing to use it to force a shutdown,” he added.

Most government shutdowns are brief and have little direct economic impact. But Wall Street experts remain concerned that a shutdown could shake consumer confidence.

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“We’ve seen big drops in consumer confidence in some of the most recent shutdowns, and at a time like this — where consumers have a lot to think about  — that drop in confidence can have a real effect on spending,” Cox said.

The U.S. economy has been remarkably resilient after years of high inflation and rapid Fed rate hikes meant to cool it down. While job growth has slowed slightly, the labor market remains strong and Fed officials expect the economy to avoid a recession, according to their most recent projections.

Even so, consumer confidence has been declining since the summer and a recent spike in gasoline prices has taken a toll on U.S. households.

“There’s always that worry that a drop in confidence could be enough to break the camel’s back and actually reduce spending enough to put the economy into crisis,” Cox said.

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Another shutdown could also deprive the Fed and markets of crucial economic data as the central bank faces a difficult crossroads in its fight against inflation.

After peaking at a 40-year high of 9.1 percent last June, inflation has eased significantly, falling to 3 percent this June before ticking up slightly in July and August. The Fed warned of the possibility of further rate hikes last month, as inflation remains above its 2-percent target.

Fed officials are weighing whether the central bank should hike interest rates again before the end of the year or ease off as the economy shows signs of slowing. 

The Fed will be paying close attention to federal economic data — particularly from the Department of Labor — as officials mull whether to keep putting pressure on the economy.

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A lapse in government funding would stall those reports and policymakers from getting the latest view into the economy. The Fed is funded independently and would continue to operate in a government shutdown, but without crucial information.

“When it comes to the shutdown… the principal issue is cutting off the data, and that’s very scary to the bond market in an environment in which the Fed is regarded as a wild card,” said Daniel Alpert, managing partner at investment firm Westwood Capital.

“Let’s just say we had a government shutdown over the weekend, there would be no jobs report on Friday,” Alpert said, referring to the upcoming October employment report. 

“That would have been a complete disaster. Nobody would have known what to do and everybody sort of runs for cover.”

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It could be weeks before House Republicans elect a new speaker, and there is no guarantee they will do so before the Nov. 17 government funding deadline. Until then Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial Services Committee, will serve as speaker pro tempore.

McHenry is a familiar name to Wall Street as the top Republican on the House committee with jurisdiction over the financial sector. Alpert suggested that an agreement to keep McHenry in charge of the House could assuage some of the market turmoil.

“It would be an extremely stabilizing outcome,” Alpert said. 

“Quite frankly, if [House Minority Leader Hakeem] Jeffries [D-N.Y.] was a great leader, he’d be sitting with McHenry in a backroom right now making the deal.”

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​Business The war within the House GOP has thrown another wrench into financial markets.  Wall Street experts say the political dysfunction behind Speaker Kevin McCarthy’s (R-Calif.) ouster poses new risks at a time of already heightened fears, as the Federal Reserve walks a careful line in its efforts to tamp down inflation.  Skyrocketing bond yields and…  

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

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At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.

Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.

That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

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Kalshi itself is a big part of why her ascent matters.

Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.

As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.

Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.

During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

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That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.

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Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

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America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work

For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.​

Tech’s Iron Grip: ATS and AI Gatekeepers

Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.

AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.

The Experience Trap: Entry-Level Jobs Require Years

It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.

One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.

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Burnout Before Day One

The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.

Cultural Collapse: From Relationships to Algorithms

What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.

AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.

The Ghost Job Phenomenon

Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.

Not Lazy—Just Locked Out

Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

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What’s Next? Back to Human Connection

Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.

Key Facts:

  • 25% of Harvard MBAs unemployed, highest on record
  • Only 30% of 2025 grads nationwide have jobs in their field
  • Nearly half of grads feel unprepared for real work
  • Up to 50% of entry-level listings are “ghost jobs”
  • AI and ATS have replaced human judgment at most companies

If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.

This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.

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