Wall Street closes out worst week in a decade
by Joe Williams
| December 21, 2018 05:08 PM
All three major U.S. equity indexes closed on Friday with losses, capping off one of the worst weeks for markets in a decade as the Federal Reserve's decision to raise interest rates and a looming government shutdown continue to spook investors.
The Dow Jones Industrial Average closed down 414 points to 22,445, marking a more than 1,100-point loss for the exchange since Monday in its worst week since the 2008 financial crisis. Similarly, the Nasdaq was down 195 points and the broader S&P 500 decreased 50 points to an 18-month low.
In the past, government shutdowns have not led to significant volatility in the markets. The S&P actually rose during the four previous funding lapses. But investors remain weary after the Federal Reserve's decision to raise interest rates for a fourth time this year and Chairman Jerome Powell warned that the economy could moderate in 2019.
Funding is poised to lapse at midnight as President Trump continues to demand money for a wall on the U.S.-Mexico border. The House on Thursday passed a spending bill that included $5.7 billion in border security funding, but the measure is not expected to pass the Senate and Trump told reporters he was prepared for "very long" government shutdown.
Trump's ongoing trade tiff with China also remains a top concern. The two countries are expected to continue negotiations in January, but the White House previously warned that it is prepared to issue tariffs on an additional $267 billion in Chinese goods if an agreement is not reached.
Over the past few months, companies have sped up imports of products from the country in anticipation that tariffs on the existing $200 billion in products would also rise from 10 percent to 25 percent.
https://www.washingtonexaminer.com/business/worst-wall-street-week-in-a-decade-as-federal-government-prepares-for-shutdown
