In equity markets, U.S. stocks have largely shrugged off the economic and political risks, with JPMorgan noting a high probability that the shutdown could last around 11 to 15 days. The release of the NFP report on Friday and other economic data will likely be delayed.

On the federal jobs front, the Congressional Budget Office estimates that 750,000 employees could be furloughed. Agencies have activated contingency plans that will begin sidelining these workers today, resulting in the suspension of a wide range of services.

Dubbed the "Schumer Shutdown," the effects of a shutdown on the economy will entirely depend on duration. As far as duration, JPMorgan's chair of global research, Amy Ho, told clients there is "a 70% probability of a potential government shutdown lasting around 11-15 days."