This past week brought a mix of financial headlines that directly affect American families—from the government shutdown’s impact on the stock market to looming questions about Obamacare subsidies expiring in 2025 and signs of cooling in the U.S. housing market 2025. While the news can feel overwhelming, these events carry clear lessons for how we plan, save, and protect our financial future. In this article, we break down the three most important stories and their implications, plus a roundup of other key updates shaping your money.
Government Shutdown 2025: Services Stall, Markets Stay Open
The U.S. government officially shut down on October 1 after lawmakers failed to pass a new funding bill. Hundreds of thousands of federal employees face furloughs, many services are suspended, and the publication of critical economic data such as jobs and inflation has been paused. For households dependent on federal income, this adds immediate stress. But one thing not stopping is the stock market—trading continues during a government shutdown, as exchanges remain open and active (Reuters).
Despite the headlines, stocks held steady. After a brief dip, major indices rebounded to fresh highs by October 2. Gold spiked to a record before easing, showing typical safe-haven behavior. Looking back, the market has weathered these episodes well: during the 2018–19 shutdown, the S&P 500 gained nearly 10%, and during the 2013 shutdown it rose about 3% (Kiplinger). In other words, history shows the stock market during a government shutdown may see volatility, but not lasting harm.
Takeaway: Shutdowns create short-term disruption but rarely derail long-term growth. The best response is consistency: keep automatic contributions on track and maintain an emergency fund to manage temporary shocks.
For a deeper analysis on how a shutdown can impact your finances, read Government Shutdown 2025: What It Means for Your Money and What Happens to the Stock Market During a Government Shutdown?.
ACA Subsidies Expiring in 2025: Premiums Could Rise in 2026
Another pressing issue tied to the shutdown is whether Congress will extend the enhanced ACA premium tax credits introduced by the American Rescue Plan. These subsidies are scheduled to expire at the end of 2025, and if they lapse, health insurance costs for middle-income families could more than double in 2026. Analyses from KFF and the Urban Institute show that older adults not yet eligible for Medicare and households just above the subsidy threshold are most exposed.
News outlets such as the Washington Post and Barron’s warn that few households have factored this “subsidy cliff” into their budgets. Without renewal, many families could see premiums jump by thousands of dollars, intensifying the Obamacare premiums crisis and creating a real affordability challenge for 2026.
Takeaway: Healthcare is one of the largest and least predictable expenses. Now is the time to stress-test your 2026 budget under both subsidy and no-subsidy scenarios so rising premiums don’t derail your long-term financial plan.
U.S. Housing Market 2025: Prices Cool, Sales Edge Higher
After years of strong gains, the U.S. housing market in 2025 is showing signs of cooling. The S&P Case-Shiller index reported home prices up just 1.7% year-over-year—the slowest pace in nearly two years—with some cities seeing month-to-month declines (WSJ). At the same time, pending home sales rose 4% in August as easing mortgage rates encouraged more activity (CNBC).
This creates a mixed picture: prices are cooling, which could relieve some of the housing affordability crisis, but the national median still sits above $400,000. For homeowners, slower appreciation means modest equity growth. For buyers, slightly lower rates may create new opportunities but still demand careful budgeting.
Takeaway: If you’re planning to buy soon, prepare for the full cost of ownership, including closing and repair expenses. If homeownership is further out, focus on consistent saving and investing rather than trying to time price swings.
Other Financial News This Week
ETFs attract record inflows
U.S. ETFs have drawn more than $900B in 2025, fueled by demand for low-cost, transparent investment vehicles and the growth of active ETFs (WSJ).
Why it matters: ETFs are becoming the default choice for many savers, reflecting a broader shift toward simpler investing.
Takeaway: Focus on consistency in contributions rather than chasing short-term fads.
Credit markets are hot but risky
Corporate debt issuance remains strong, but defaults and bankruptcies are climbing in pockets of the market (WSJ).
Why it matters: Easy credit can mask hidden vulnerabilities that resurface when conditions change.
Takeaway: Build financial resilience with diversification and cash reserves.
Social Security continues during shutdown
Despite government closures, Social Security checks are still being issued. However, in-person services may be delayed while offices run at limited capacity (CNBC).
Why it matters: Income security is maintained, but paperwork and service requests may take longer.
Takeaway: Make sure your account and deposit information are up to date.
Electronic Arts (EA) goes private
Gaming giant EA agreed to a $55B private-equity buyout, the largest leveraged buyout ever in the sector (Bloomberg).
Why it matters: These mega-deals reflect how investors chase long-term growth themes like gaming and entertainment IP.
Takeaway: Treat thematic stories as complements, not replacements, in your long-term plan.
Student debt squeezes Gen X
Mid-career borrowers continue to face heavy student loan burdens, limiting retirement savings and delaying milestones like homeownership (WSJ).
Why it matters: High debt can hold back wealth-building opportunities.
Takeaway: Even small, automated contributions can keep long-term goals on track while paying down loans.
Microsoft’s unusual borrowing edge
Microsoft has at times borrowed at lower yields than the U.S. Treasury, highlighting rare market dynamics (WSJ).
Why it matters: Market quirks can create surprising headlines but don’t alter the fundamentals of financial planning.
Takeaway: Stick to your objectives rather than reacting to anomalies.
Crypto rally cools
After a hot summer, crypto accumulation slowed as investors reconsidered risks and volatility (WSJ).
Why it matters: High-volatility assets can swing quickly, creating gains—or losses—in short periods.
Takeaway: Keep speculative bets small compared to your long-term investments.
French inflation ticks higher
Inflation in France edged up, raising questions for the European Central Bank even as it holds rates steady (WSJ).
Why it matters: Global inflation trends affect rates and market sentiment in the U.S. too.
Takeaway: Monitor developments, but keep your focus on long-term goals.
Tariffs back in debate
New tariff proposals on imports, including autos and films, renewed concerns about trade and consumer costs (WSJ).
Why it matters: Tariffs can raise the prices of everyday goods and create uncertainty for businesses.
Takeaway: Build flexibility into your household budget to absorb price swings.
Finhabits Actions of the Week
- Stay on autopilot: Keep recurring contributions running so compounding works through uncertainty.
- Plan ahead for healthcare: Model 2026 premiums under both subsidy and no-subsidy scenarios.
- Reinforce your safety net: Maintain 6–12 months of essential expenses in liquid reserves.
