Dow Drops Over Shutdown Fears
The market doesn’t like uncertainty, and with a possible government shutdown looming and no indications that Republicans will stop playing their dangerous game, the stock market is dropping.
The Dow Jones Industrial Average dropped more than 150 points at open, about a 1 percent drop. The S&P and Nasdaq also fell close to 1 percent.
About an hour after the open, stocks had rebounded a bit but were still trading down by more than 0.5 percent.
Stocks fell last week, as well, over concerns that the government would shut down after hitting a record high earlier this month.
Analysts are concerned a shutdown and, looking ahead, a potential default on the government’s debt in October could have a harmful effect on a sluggish economy, especially the longer it goes on.
The uncertainty was also having an effect overseas. Asian markets on Monday also fell, as nervous investors were watching the U.S. to see what happens. European markets were also down in afternoon trading.zz2gOoRguVT