The Streak Continues. Stocks managed to crawl back into positive territory after opening lower on Thursday, marking the fifth consecutive day of gains following the selloff at the end of last year. The move lifts both the S&P 500 and the Dow Jones Industrial Average out of correction territory, leaving them less than 10% below the indexes’ previous peaks. The next test for the S&P 500 will be whether it can pass 2600, where selling pressure is expected to emerge. In today’s After the Bell, we…
…look into how government shutdowns have affected the market historically; …wonder what opportunities a shutdown might offer to companies; …and explain why one strategist thinks the market can keep crawling higher. For Stocks, This Shutdown Is Better Than Usual
Markets did it again on Thursday, rising for another day despite a lack of news on key fronts. Federal Reserve Chairman Jerome Powell’s interview Thursday was consistent with the more dovish tone from recent Fed speakers; there were no notable updates on the trade front; and the government shutdown is heading into its 21st day with no signs of a resolution.
The prolonged government shutdown hasn’t affected the stock market much this time. In fact, with a 7% gain over the past 20 days, the S&P 500 has had the best performance during a government shutdown since at least 1976. For all the 10 shutdowns since the 1970s, the benchmark’s average performance was a loss of 1.01%. The index has gained in each of the past three closures, two in 1995 and