And few traders are talking about third quarter corporate earnings reports either, which start next week.
"The market is going to remain completely occupied by Washington until this is resolved," said Bob Doll, chief equity strategist and portfolio manager at Nuveen Asset Management, which oversees $126 billion.
Despite these concerns, Doll and other investors believe the possibility that the U.S. government would willingly default on its debt is remote.
"It's hard to really say how this is going to end, but I think it's unthinkable that it will end with a default of the U.S. government," said Steve Auth, chief investment officer at Federated Investors.
Not all parts of the market were optimistic Friday. Yields for the one-month T-bill that mature around the time the U.S. government is expected to hit its borrowing limit have risen to their highest level in a year. The yield on one-month T-bill was 0.12 percent, up sharply from 0.01 percent five days ago.
Bond market observers said that fund managers for money market funds, who primarily invest in these types of securities, have been selling short-term Treasuries. Fund managers don't want to be stuck holding U.S. government debt maturing around the time the federal government hits its borrowing limit.
Average investors have also been moving out of riskier assets as well. Roughly $300 million was pulled from stock mutual funds last week, according to fund tracking firm Lipper. It was the first time this year that mutual funds saw net outflows, Lipper said. Exchange-traded funds also saw investors head toward the exits, with $2.8 billion leaving ETFs last week.
"We have seen a pull out of (stocks) and investors moving to cash," said Kristina Hooper, head of U.S. investment strategies at Allianz Global Investors. "We're very focused on being there, holding our client's hand and helping them think about the long-term so they're not getting rattled by what is short-term event."