A US government shutdown looks likely, and it'll hit stock and the economy, Goldman Sachs says

• A US government shutdown is more likely than not to happen in 2023, Goldman Sachs warned.
• Lawmakers have been sparring over government spending and are unlikely to agree on a budget in time.
• That could be a headwind to stocks and economic growth, the bank said.

The US government looks on track to shut down at the end of next month, and that's set to weigh on stocks and the economy, according to Goldman Sachs.

"The federal government looks more likely than not to temporarily shut down later this year," the bank's team of strategists warned in a note Sunday evening. "This has looked fairly likely since the debt limit deal, in light of the thin House majority and a lack of consensus on spending levels."