It is officially day eight of the government shutdown and it seems as if little progress has been made to resolve the issue. It has gotten to a point where we ask, “will a deal get done before the October 17th default deadline?” Washington has received its fair share of criticism and there does not seem to be any sign of a compromise coming soon. That being said, besides ruining my Sunday plans to go visit the Statue of Liberty, the government shutdown has also taken its toll on the stock market. As we approach October 17th, the looming uncertainty is beginning to have taxing effects on the stock market. Today, the Dow and S&P fell 1% while tech stocks seemed to have taken the largest hit.
The NASDAQ has fell 2 % today and many stocks within the NASDAQ have fallen around 20%. Technology companies including Netflix, Facebook, Google, Tesla and so on all reported losses. As Ryan Detrick, senior technical strategist at Schaegger’s Investment Research said, “"With the uncertainty surrounding Washington dominating trading, today was the day the momentum names finally were hit hard.” Many people are selling stocks that performed well in the first three quarters in order to cash in on the positive returns now. Technology stocks have performed relatively well this year. Moreover, the more speculative nature of technology stocks and their propensity to be affected by economic cycles has caused a huge sell-off. The Internet index within NASDAQ experienced its greatest decline, percentage wise, in two years. It is clear the mess in Washington needs to be dealt with as soon as possible.