Looming Government Shutdown Punishes Stocks

Looming Government Shutdown Punishes Stocks (Bloomberg)

With it looking likely that the U.S. government could face a shutdown tomorrow, investors fled stocks, causing the S&P 500 to finish down for the day, eating into the index’s quarterly gain. “We are at the mercy of whatever develops in Washington,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said. “An attempt to prevent a shutdown is not totally unexpected, but some agreement will be better than none.” If lawmakers do not reach a deal by midnight today, the government will be shut down tomorrow.

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