The stock market cratered several hundred points today as a government shutdown grows more likely. Some economists and market professionals believe that a government shutdown is single biggest risk to the economy in 2019.
The stock market took a nosedive on Thursday, as fears of a looming government shutdown melded with Wednesday’s market discontent over the Federal Reserve’s decision to continue to raise rates in 2019.
The market convulsion saw the Dow Jones Industrial Average fall by as much as 650 points at one point during mid-afternoon trading, with the S&P 500 down 2.4 percent and the Nasdaq dipping into bear market territory after a decline of 2.6 percent. Markets settled later in the afternoon, with the Dow hovering just above 300 points down.
Some economists and traders have singled out a government shutdown as the biggest risk to the economy in 2019. With markets already shaky, any ongoing political dysfunction could lead to a dip in investor confidence, and hobble the economy’s chances for continued growth.