ZCZC
BCN-11
US-STOCKS-MARKETS
Dow ends 2.0% lower amid fears of US government shutdown
NEW YORK, Dec 21, 2018 (BSS/AFP) – Wall Street suffered its second
straight rout Thursday as worries about a US government shutdown added to
upset at the Federal Reserve’s latest interest rate hike.
The Dow Jones Industrial Average ended 2.0 percent lower at 22,859.60, a
loss of 460 points.
The broad-based S&P 500 slid 1.6 percent to 2,467.42, while the tech-rich
Nasdaq Composite Index slumped 1.6 percent to 6,528.41.
A bruising December has set up Wall Street for its worst year since the
financial crisis. The S&P 500 is currently down 7.7 percent for the year and
the Nasdaq is on the verge of a “bear market,” which is a drop of 20 percent
from its peak this year.
The latest pullback came after Republican congressional leaders told
reporters President Donald Trump would not sign a stopgap spending bill
because it does not contain border wall funding.
The US government only has funding to operate through December 21, and
without an agreement will have to shut down.
Trump’s rejection sent lawmakers scrambling for a new compromise, although
Democrats have stood firm saying they will not support a spending measure
that funds Trump’s wall on the US-Mexico border.
The revived possibility of a shutdown worsened the downbeat mood on
markets after the Federal Reserve announced another interest rate hike on
Wednesday and made only subtle adjustments to the course of monetary policy
tightening next year despite rising worries about global growth and a big
pullback in the stock market.
Analysts also said the US indictment of two Chinese hackers tied to
Beijing’s security services reminded investors of the unsettled state of US-
China trade relations.
“We have a trade war, the economy weakening, and now the possibility of a
shutdown,” said Peter Cardillo of Spartan Capital Securities. “All that is
feeding by itself.”
BSS/AFP/HR/0918