Indeed, Trump's latest proposal over the weekend to offer extended protections for "Dreamers" in exchange for border wall funding was rejected by Democratic leaders as a non-starter, suggesting both sides remain far apart.

And with some analysts speculating whether instead of days or weeks, the current shutdown may last 2, 3 or even more months, pundits are starting to be increasingly concerned about its direct impact to GDP. According to BofA economists the impact to US growth from the partial government shutdown will be -0.1% for every two weeks the shutdown drags on, and as a result they have trimmed their 4Q GDP by 0.1 (to 2.8%), while their Q1 estimate of 2.2% will likely be downgraded similar to what JPMorgan did last week.

In addition to the direct drag, indirect impacts are likely: furloughed workers may slow consumption and businesses could delay capex spending due to uncertainty. Companies who are suppliers to government contractors are also impacted, and SBA lending to small businesses/entrepreneurs has also been halted. Additionally, the delayed release and/or distortion of certain economic data creates more uncertainty for markets.