Over the weekend, the U.S. government shutdown following a bill that should have kept the government funded until February 15 was voted down in the Senate and would push through for a third day following the failure of the Senate to come up with an agreement on Sunday to break an impasse prior to the beginning of working week in Washington.
Following the beginning of the shutdown, the Democrats were blamed by the White House with the White House Press Secretary Sarah Sanders stating that it was not the behavior of legislators but obstructionist losers By Sunday, Republican lawmakers have started on a plan that would fund the government until February 8.
Stocks slipped as early as Sunday with the Dow Jones Industrial average futures losing 33 points and at some point losing as much as 101 points. Last week, the Dow Jones crossed the 26,000 milestone for the first time due to the gains from a number of stocks under the index. Among the biggest contributors to the rally in the Dow includes Boeing shares which gained more than 13% since the Dow Jones crossed the 25,000 level.
However, by Thursday last week, the Dow Jones Industrial average fell by around 97 points to a session low of 26,017.81 on concerns of the government shutting down by the weekend with the congress needing to pass a spending bill by the end of the week in the prevention of the shutdown which took place over the weekend.
Later during the most recent trading session, the Republicans and Senate Democrats have been able to reach an agreement to reopen the government following the previous reluctance of Democrats to pay for resumed operations temporarily. U.S. President Donald Trump then signed the deal at the White House which would allow the reopening of the government until February 8.
The S&P 500 rallied by 0.8% to 2,832.98 led by the rally in the telecommunication and energy sector. The Dow Jones Industrial Average also traded 0.6% higher to 26,214.60. The Nasdaq Composite was also 1% higher to 7, 408.03.
Due to the U.S. government shutdown, the U.S. dollar also declined at the beginning of the week against other major currencies. The U.S. dollar index which measures the strength of the dollar against a basket of other major currencies slipped down by 0.25% to 90.26 slightly higher than the currency’s recent three year low of 89.96. Both the Euro and the Pound traded 0.25% against the U.S. dollar with the euro trading 0.25% to 1.22543 while the GBP trading 0.31% higher against the dollar. On the other hand, the greenback was also lower by 0.18% against the Canadian dollar to 1.2471.
However, following the end of the shutdown, the U.S. dollar recovered against other major currencies. The U.S. dollar index was 0.16% higher to 90.28 close to its three-year low of 89.96 from last Friday’s session. The USD/JPY traded to a new high of 111.16 before trading slightly lower at 111.02.
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