Dow down more than 100 as Obama calls for vote to end shutdown

US stock indices remained deeply in the red late on Tuesday, as President Obama spoke in a press conference about the political stalemate that threatens to send the US into default.

With a little over half an hour to the close in New York, the Dow was trading down 109 points or 0.73% at 14,827, with the S&P 500 off 0.81% and the NASDAQ 100 1.55% lower on the day. The Dow is now down almost 6% from its record high, which was achieved in the middle of September.

President Obama asserted that the US will pay its bills but acknowledged creditors will not be calmed until Congress takes action, saying until that happens there will be a ‘cloud over US economic credibility’.

He said that members of the Senate and Congress seeking to downplay the consequences of a default made him nervous, but that he believed there would be enough votes in Congress ‘to take this drama off the table.’

President’s Obama’s claims that he is willing to negotiate echo earlier comments from House Speaker John Boehner, but we are yet to see action from either sides to back up these words.

The government shutdown has caused the postponement of several economic reports, including today’s US trade balance data. This puts added importance on quarterly reports from corporate America, which will begin to come in thick and fast in the next few weeks. We begin tonight with Alcoa, which reports after the stock market closes in New York and things will pick up pace at the end of the week when we hear from banking giants JP Morgan and Wells Fargo.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.