Markets are in the red early in the U.S. trading session.

The Dow is down 103 points.

The S&P 500 is down 9 points.

The Nasdaq is down 12 points.

At this rate, the would be the sixth down day in seven trading sessions.

All of this comes as Congress continues to debate the budget. Without an agreement, we could see a government shutdown next Tuesday.

“In the event of a government shutdown, functions of the federal government considered “non-essential” cease while “essential” functions continue,” wrote Barclays’ Michael Gapen and Michael Gavin. “Our economists estimate that for every week the government is shut down, real federal government consumption and gross investment falls 1.6% q/q saar and quarterly real GDP growth declines 0.1pp.”

“If a shutdown is avoided, it is likely to be because congressional Republicans have opted to wait and push for policy concessions on the debt limit instead,” wrote Goldman Sachs’ Alec Phillips. “By contrast, if a shutdown occurs, we would be surprised if congressional Republicans would want to risk another difficult situation only a couple of weeks later.

“The upshot is that while a shutdown would be unnecessarily disruptive, it might actually ease passage of a debt limit increase.”

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