Politics

Stocks Falling As Government Shutdown Looms, Senate Holds Procedural Vote Today

| by Sarah Fruchtnicht

Stocks fell Wednesday while Sen. Ted Cruz, R-Texas, staged his faux-filibuster in hopes of defunding Obamacare.

Investors remain wary of a possible Oct. 1 government shut down in the event that Washington doesn’t enact funding for the next fiscal year.

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"A government shutdown starting next week is looking increasingly likely," said Jim Russell, a regional investment director at U.S. Bank. "That will not be welcomed by the capital markets."

Wall Street also saw stock lower in the last half-hour of trading on Tuesday. Cruz began his faux-filibuster Tuesday afternoon. The yield on the 10-year Treasury note fell from 2.70 percent late Monday to 2.66 percent Tuesday, Newsday reported.

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Briefing.com's Patrick O’Hare said investors “have shifted back into a wait-and-see mode. They are waiting to see what transpires with the budget debate and they are waiting to see if the US stock market shows some buy-the-dip verve or continues to pull back.”

According to USA Today, when Cruz stepped down after 21 hours of talking, the Senate set a procedural vote for 1 p.m. today to begin debate on the budget resolution.

Senate Majority Leader Harry Reid, D-Nev., is still expected to strip the provision from the bill that defunds the Patient Protection and Affordable Care Act. It will be returned to the House later this week with a stopgap measure that would keep the government funded until Nov. 15.

Sources: Newsday, Raw Story, USA Today