Markets Starting to React

Via WaPoStocks dip as lawmakers remain at standoff on raising US debt limit; Dow falls for fourth day:

The Dow Jones industrial average fell 198.75 points, or 1.7 percent, to 12,302.55, its biggest one-day drop since early June. It has fallen for four days straight.

The S&P 500 fell 27.05 points, or 2 percent, to 1,304.89. The technology-focused Nasdaq composite index fell 75.17 points, or 2.7 percent, to 2,764.79, its worst day in five months.

The Dow is headed for its worst weekly decline in nearly a year and is now 4 percent below the 2011 high it reached on April 29. The S&P, which serves as a benchmark for most mutual funds, is also down 4 percent from its recent peak.

Perhaps these numbers will get the attention of the intransigent in Congress?

We shall see.

There are only 3 trading days left until the deadline.

FILED UNDER: Deficit and Debt, Economics and Business, Quick Takes, US Politics
Steven L. Taylor
About Steven L. Taylor
Steven L. Taylor is a Professor of Political Science and a College of Arts and Sciences Dean. His main areas of expertise include parties, elections, and the institutional design of democracies. His most recent book is the co-authored A Different Democracy: American Government in a 31-Country Perspective. He earned his Ph.D. from the University of Texas and his BA from the University of California, Irvine. He has been blogging since 2003 (originally at the now defunct Poliblog). Follow Steven on Twitter

Comments

  1. A voice from another precinct says:

    Steven,

    How many time do they have to tell you? This issue is more important than a mere triffle such as the collapse of the stock market. This is about the economic soul of our nation and our children’s and grandchildren’s future. The collapse of the economy is a small price to pay for stopping the Islamofascimarxisocialist (I think I got them all in, this time) assault on our basic nature as a nation!

  2. Tsar Nicholas II says:

    FYI, regarding the equities markets, there are a lot of other factors in play, including overvaluation, poor market action (volume, breadth, leadership), weak leading economic indicators, overbullishness among institutional investors, rising global yields in fixed income securities and various technical indicators that drive hedge fund trading.

    The markets don’t rise or fall based upon one particular issue. Just doesn’t work that way.

  3. EddieInCA says:

    @Tsar Nicholas II:

    Um.. Wrong…

    TARP – led by GW Bush – was defeated in Congress.

    The Market dropped more than 700 points.

    TARP passed very quickly after that.

    Unlike TARP, not passing a debt ceiling will have much bigger implications than a 700 point drop in the stock market.

    Grow up.