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Government Shutdown Weighs on Stock Market

Business News

0  Updated at 7:06 am, October 7th, 2013 By: ABC Digital
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iStock/Thinkstock(NEW YORK) — The debt limit debate continues as the government shutdown enters its second week.

Investors are beginning to show fears that the standoff will compound market volatility. Dow, S&P and NASDAQ futures were all negative heading into Monday’s trading session.

House Speaker John Boehner told ABC’s George Stephanopoulos on Sunday that the House will not increase the debt ceiling without other provisions being added to the bill.  The U.S. is set to hit its limit on Oct. 17 and a default will follow unless politicians reach a deal.

Moody’s says the chance of a U.S. default is “very low.”  Its CEO, Ray McDaniel, told Bloomberg Television on Saturday that the effects of a government shutdown “may not be particularly damaging in the short term.”

These sentiments were predicated on confidence that there would be a resolution of the debt ceiling, much as there was in 2011.

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