(As of 7:18 am PST)
Markets are under serious selling pressure this morning
as the fiscal showdown in Washington continued over the weekend. The federal government risks shutting down
for the first time in 17 years as members of the House and Senate were unable
to agree to terms of a budget deal over the weekend that would raise the debt
ceiling and keep the government paying its bills. The House sent a bill back to the Senate
Sunday afternoon that included a delay to the implementation of the Affordable
Care Act (Obamacare) for another year.
The Democratic led Senate will most certainly vote against the bill this
afternoon, and if Congress cannot come to an agreement by Tuesday morning the
government will shutdown. Markets are
reacting to the developments as we’d expect.
Volatility has surged this morning with the VIX (otherwise known as the
fear gauge) up 12% as investors bought protection against a market
decline. All 30 stocks that make up the
Dow component are lower while the S&P500 and Nasdaq are down near 1%. All other global financial news has taken a
backseat to the drama unfolding in Washington.
After a surprisingly calm trading month in September, the last day of
the quarter looks to be a doozy.
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