The U.S. Government Shutdown (temporary closure) occurs when Congress fails to pass a budget or funding legislation on time. If a decision is not made by October 1, most government agencies will cease operations, and thousands of employees will go on temporary unpaid leave.

This situation affects the market's decline for the following reasons:
1. Uncertainty: The biggest risk for investors is political instability. It becomes unclear when the government will start operating again and how expenses will be funded.
2. Negative economic impact: If government employees do not receive their salaries, their consumption will decrease. Contractor companies may also not get paid on time, leading to a short-term slowdown in the economy.
3. Debt and rating risk: If the shutdown prolongs, doubts about the U.S.'s ability to pay its debt will arise. This could lower the credit rating and negatively impact the bond market.
4. Investor reaction: Many will shift their capital to safe assets (gold, U.S. short-term treasury bills). As a result, stocks will decline, and the dollar will become unstable.

👉 In short, the main reason for the market's decline is political uncertainty and short-term negative expectations for the economy.