Wall Street shrugs off government shutdown - for now
NEW YORK (REUTERS) - Wall Street took the partial shutdown of the United States (US) government in stride on Tuesday, but market analysts expected investor patience to run out if it lasts more than about a week as a more worrisome battle looms in Congress over the federal debt ceiling.
After more than a week of declining stock prices over worries that political gridlock would result in a shutdown, investors bid up stock prices on Tuesday at the reality and took in stride closures that threw hundreds of thousands of federal employees out of work.
Opinions over when the political stand-off over the budget might end and the extent of potential damage to the economy varied, but most commentators agreed around the idea that the impasse would keep the government closed for about a week.
Previous government shutdowns have generally been brief - usually just a few days - and the memory of a late agreement to avert the fiscal cliff in 2012 explains to some extent the sanguine response thus far.