Investors this week are set to closely monitor developments in Washington, D.C., as lawmakers race to pass legislation to avoid a government shutdown by the end of the month and debate raising the debt ceiling. Elsewhere, economic data on consumer confidence is also due for release.
What’s it going to take to knock the U.S. equity market off-kilter? After the prospect of a collapse of a giant Chinese property developer saddled with some $300 billion in debt saw blue chips put in their worst one-day decline in two months on Monday and the Federal Reserve confirmed on Wednesday it will soon start tightening monetary policy, the Dow Jones Industrial Average (DJIA) ended the week higher. The week’s narrative included the Federal Reserve finally confirming it is going to wind down its bond purchase program, implemented during the worst of the coronavirus pandemic last year, now that the economy is recovering, and also signalling an eventual rise in interest rates, though Fed Chairman Jerome Powell pushed back against the idea that was a certainty next year.
Stocks ended a choppy session higher to extend gains after their best day since July. Jay Hatfield, InfraCap Founder, CEO and Portfolio Manager, and Josh Wein, Hennessy Funds Portfolio Manager joined Yahoo Finance Live to discuss.