Government shutdown impact on the stock market

Government shutdown impact on the stock market

Author: tros84 Date: 03.07.2017

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However, you can change your cookie settings at any time. These are external links and will open in a new window. Hundreds of thousands of workers were laid off, businesses have been hurt, and the standing of US credit in the eyes of the world was severely impacted.

Market Reaction To Government Shutdown - Business Insider

The yield on short term US Treasury bonds - the amount the US government most pay to investors to hold US debt - has risen, increasing US borrowing costs and indicating that global investors have become unhappy with Washington wrangling. However, markets have not reacted as sharply as they did during prior budget negotiations, particularly during the debt ceiling negotiations that saw yet another last-minute deal.

government shutdown impact on the stock market

The business community remains focused on other concerns, like when the Federal Reserve will begin to ease off its extraordinary efforts to prop up the US economy - something the central bank says will not happen any time soon, partially due to Washington dysfunction. A veteran trader, Mr Polcari was also at the NYSE during the last government shutdown, from Benedict Willis, another trader at the NYSE, said that in fact, companies might start to use the shutdown as a way to justify less than stellar third-quarter results.

For many businesses, another debt squabble in Washington is just background noise during a time of good, if not great, economic growth. During the debt ceiling negotiations of , he says he saw his business decline in the wake of so much uncertainty at a fragile time of the US economic recovery.

Now, while business isn't as a robust as it was before the crisis, he's no longer as sensitive to what he calls "Washington posturing. One-half of bosses surveyed by the Business Roundtable "indicated that the ongoing disagreement in Washington over the budget and debt ceiling is having a negative impact on their plans for hiring additional employees over the next six months".

Furthermore, the shutdown impacted the release of economic data, particularly important measures of job creation and prices. So the full impact of the shutdown may not be understood for many months, until the various agencies responsible for collecting and releasing the data can get restarted.

government shutdown impact on the stock market

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government shutdown impact on the stock market

Search Search the BBC Search the BBC. BBC News News navigation Sections. Business selected Market Data Markets Global Trade Companies Entrepreneurship Technology of Business Business of Sport Global Education Economy. What's the economic impact of a US government shutdown?

Markets Assess the Impact of a Federal Shutdown - The New York Times

By Kim Gittleson BBC reporter, New York. These are external links and will open in a new window Share this with Facebook Share this with Twitter Share this with Messenger Share this with Messenger Share this with Email Share Share this with These are external links and will open in a new window Email Share this with Email Facebook Share this with Facebook Messenger Share this with Messenger Messenger Share this with Messenger Twitter Share this with Twitter Pinterest Share this with Pinterest WhatsApp Share this with WhatsApp LinkedIn Share this with LinkedIn Copy this link http: Image caption Markets are hoping a shutdown doesn't mean a red light for the US economy The US government partial shutdown is over after 16 days.

But what exactly has the economic impact been?

And investors have not been happy - particularly foreign nations, like China, which own US debt. I don't believe that the people who run private companies wake up every morning and worry very much about what's happening in Washington Brian Hamilton, Sageworks. Top Stories Saudi king ousts nephew for son King Salman has replaced the previous heir to the throne - his nephew - with his year-old son. UK Home England N. Ireland Scotland Wales Politics.

Government Shutdown and the Stock Market Impact | Sound Mind Investing

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