Dow Futures Rise as Shutdown Deal Nears
- government shutdown and its impact on markets as of Sunday evening, November 19, 2023.
- * Potential Shutdown End: Republicans in Congress are reportedly poised to advance a bill to end the government shutdown.
- The prospect of ending the shutdown spurred positive market movement in futures trading:
Government Shutdown Update – November 19, 2023 (Evening)
Table of Contents
Expert Analysis: – victoriasterling
This report summarizes the current status of the U.S. government shutdown and its impact on markets as of Sunday evening, November 19, 2023. A potential deal to end the shutdown is emerging, but faces opposition from some Democrats due to the lack of guaranteed Affordable Care Act (ACA) subsidy extensions.
Key Developments:
* Potential Shutdown End: Republicans in Congress are reportedly poised to advance a bill to end the government shutdown.
* Senate support: Sources indicate sufficient Democratic votes in the Senate to overcome a procedural hurdle for a short-term funding bill.
* bill Details: The proposed bill would:
* Extend current funding through January 31st.
* Fully fund SNAP (Supplemental Nutrition Assistance Programme) and Veterans Affairs for the remainder of the fiscal year (ending next September).
* ACA Subsidies: Democrats will not receive an extension of affordable Care Act subsidies in this bill. They have been offered a Senate vote on the issue before year-end, a concession previously rejected.
* Political Opposition: Many Senate and House democrats are expected to vote against the bill due to the lack of guaranteed ACA subsidy extensions. Democrats intend to make this a key issue in the upcoming midterm elections.
* Impacted Programs: SNAP payments were briefly disrupted during the shutdown. transportation Secretary Scott Duffy issued warnings about potential air travel disruptions ahead of Thanksgiving, with thousands of flights already canceled.
Market Reaction:
The prospect of ending the shutdown spurred positive market movement in futures trading:
| index/Asset | Change | Percentage Change | |
|---|---|---|---|
| Dow Jones Industrial Average Futures | +134 points | +0.28% | |
| S&P 500 futures | Up | +0.45% | |
| Nasdaq Futures | Up | +0.64% | |
| 10-Year Treasury Yield | +3.5 basis points | 4.128% | |
| U.S. Dollar vs. Euro | Up | +0.14% | |
| U.S. Dollar vs. Yen | Up | +0.27% | |
| Gold | +$40.30 | +0.35% | $4,023.90/ounce |
| U.S. Oil Futures | Flat | – | $59.77/barrel |
| Brent Crude | Little Changed | – | $63.62/barrel |
Sources:
* ABC News