It’s day 2 of the government shutdown. And now investors have become more nervous about the ramifications of the political stalemate in Washington.
The Dow, the S&P 500, and the Nasdaq closed Wednesday with modest losses, pulling back from steeper drops in morning trading. Stocks rallied on Tuesday, the first day of the shutdown.
The biggest worry now: the potential for a government default on October 17. If Congress fails to raise the debt ceiling, the U.S. government will be unable to pay all of its bills later this month.
Treasury Secretary Jack Lew said Tuesday that the government has started to use the last of its “extraordinary measures” to ensure it stays below debt ceiling.
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