Dow Begins Falling in October Even After Congress Blocks Government Shutdown: Live Updates

Stocks continued to fall on Monday even after U.S. lawmakers managed to reach a short-term deal that would a Prevented government shutdown.

The Dow Jones Industrial Average fell 35 points, or 0.1%. The S&P 500 rose 0.2%, while the Nasdaq Composite gained 1%.

Discover was the biggest gainer on Monday morning, up 6.6%. Semiconductor company Nvidia and insulin pump maker Insulet rose 5.5% and 3.2% respectively. Cryptocurrency-related stocks Coinbase rose 2.2%, while Marathon Digital gained 6.2% on rising cryptocurrency prices.

The only positive sectors in the overall market index were the communications services and technology sectors. Communications services grew 1.2%, while the technology sector grew 1%.

The Senate approved the resolution a few hours before midnight on Saturday, which was then signed by President Joe Biden and entered into force. The bill keeps the government on track until mid-November, a longer period that lawmakers can use to finalize funding rules.

Initial reaction to the close was positive, with stock futures remaining in positive territory for most of Sunday evening and into Monday. However, futures contracts fell even before markets officially opened as investors renewed their focus on rising interest rates near 15-year highs.

According to Jay Hatfield, managing director of Infrastructure Capital Management, the government shutdown represented a “small market surplus.” Hatfield hailed the tech sector’s gain on Monday as a relief after the shutdown was averted.

“We’re dealing with two opposing forces [today]: higher interest rates and some resumption of relief efforts so we don’t have to shut down the government,” Hatfield said.“The reason the market isn’t growing more is actually because of interest rates. Interest rates currently make up 90% of what dominates trading.

The yield on the 10-year Treasury note rose 11.10 basis points to 4.681% on Monday as investors sold safe-haven Treasury bonds after news that the market avoided the close.

Sentiment soured as investors feared lawmakers would ultimately head for another lockdown fight, with Saturday’s deal doing nothing to spark disagreements over overall levels of government spending, the border, and Ukraine.September

was the worst monthly result of the year for the S&P 500 and Nasdaq Composite indexes. The three most important averages closed the quarter in the red.

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