Government Shutdown and Debt Ceiling Deadline Begin to Weigh on Stock Markets

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The sell-off in U.S. equities accelerated this week as the shutdown of the U.S. Government stretched to its 9th straight day. The lack of progress has markets increasingly worried about the economy and stalemated debt negotiations.


“With each passing day of a shuttered government uncertainty grows, and one thing the stock market does not like is uncertainty,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “Without any resolution on the horizon, the likelihood of a default and the immense fallout that would likely follow rises”.

 

 

 

TOP WEEKLY INDEX MOVERS (+ / -)

 

TOP 5 EQUITY INDEXES: 10/02 - 10/08
NASDAQ INTERNET INDEX (QNET) -5.3%
PHLX HOUSING SECTOR INDEX (HGX) -4.6%
PHLX HOUSING SECTOR INDEX (HGX) -4.4%
NASDAQ OMX US WATER INDEX (GRNWATUSL)  
NASDAQ CHINA INDEX (NQCN) +2.4%
 
TOP 5 COMMODITY INDEXES: 10/02 - 10/08
NASDAQ COMMODITY PRECIOUS METALS ER INDEX (NQCIPMER) +3.4%
NASDAQ COMMODITY GOLD INDEX ER (NQCIGCER) +3.2%
NASDAQ COMMODITY NATURAL GAS INDEX ER (NQCINGER) +2.4%
NASDAQ COMMODITY CORN INDEX ER (NQCICER) +2.3%
NASDAQ COMMODITY LEAN HOGS INDEX ER (NQCILHER) +2.3%

OTHER NOTABLE INDEX MOVES

  • The NASDAQ Biotechnology Index (NBI) fell 5.3% in the weekly period in a sharp break from the strong run-up during the past 3 years. The Index fell below its 50-day moving average on October 8th and has continued to weaken since.
  • Though gold remains in a longer-term downtrend, precious metals were generally stronger for the week as the NASDAQ Commodity Precious Metals ER Index (NQCIPMER) rose 3.4% over the most recent 5-day period.
  • Chinese stocks also rose over the period as some speculate on the possibility of additional Free Trade Zones being created in the country. The NASDAQ China Index (NQCN) rose 2.4%.

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Nasdaq.com Blog , Nasdaq.com Blog , Commodities

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