Wall Street rises 150 points as US government shutdown approaches
The US stock market has an uptick after record lows in December.
Wall Street is rebounding as a US government shutdown looms. US President, Donald Trump, has threatened not to sign a federal funding bill over payment for a US-Mexico border wall.
Trump and Congress battle over border
Trump has called for government funding for a border wall, even though he earlier promised that Mexico would pay for it. His political opponents in the US Congress refuse to pay for the structure and a shutdown of government services is possible. Though federal workers will be impacted, Wall Street isn't usually affected by a government stoppage, as LPL senior market strategist, Ryan Detrick, noted.
‘Although shutdowns get a lot of media hype, the reality is that stocks tend to take them in stride. In fact, the S&P 500[ Wall Street] has gained during each of the five previous shutdowns,’ said Detrick.
Fed hike hurts stocks in December
A more immediate factor affecting Wall Street overall in December is the US Federal Reserve raising interest rates. The US central bank raised the lending rate by one quarter point and that action has driven down the already bearish stock market. Investors were worried about the Fed not supporting stock prices during volatile times. The Federal Reserve raising interest rates has worried investors who are concerned that increasing the interest amount will eventually slow consumer spending and cause an economic slowdown.
However, there is optimism in the US markets as New York Federal Reserve Chair, John Williams, said the Fed may reevaluate the bank's interest rate policy in 2019. Investors will watch and see how the political and economic news will affect the US markets.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
