Courtesy of John Nyaradi.
Ongoing Government Shutdown will likely continue to drag down stock markets
I predict another red day for the stock market on Thursday, due to the continued US Government shutdown and due to the fact that neither side has given in just yet.
Yesterday was a red day for US stock markets, with the S&P 500 (NYSEARCA:SPY) losing .07%, the DJIA (NYSEARCA:DIA) losing .39%, and the NASDAQ 100 (NASDAQ:QQQ) losing .08%. Considering the gravity of the shutdown and the 800,000 unemployed Federal employees, I would like to think that the facts will continue to sink in on this issue, considering that just yesterday markets began to slip ever so slightly. The minor slip yesterday appears to be a slow realization that the fight in Washington is set to go on a little longer than expected, otherwise investors simply do not care.
Either way, investors will likely begin to care more as this crisis draws on due to the economic ramifications that will follow a prolonged shutdown, which is why I think US stock markets will sink lower on Thursday.
Internationally, European markets followed led the US trend with large drops; Asian markets however appear to be another mixed bag, with the Hang Seng Index rising nearly 1% into the green and the Nikkei Index sinking nearly 1% into the red. Apparently Chinese investors are happy with a new non-manufacturing report that was released.
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