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Wall Street shrugs off 'sequester': Why is it ignoring Washington this time?

The stock market, flirting with all-time highs, seems relatively unfazed by Washington's latest fiscal stalemate over the sequester. Here are six reasons for the new attitude.

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Specialists Thomas Facchine, Peter Giacchi, and John Parisi (left to right) look at their screens on the floor of the New York Stock Exchange Thursday. The stock market closed higher Friday, despite the government's inability to prevent the 'sequester' spending cuts.

Richard Drew/AP

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Sweeping government spending cuts are set to go into effect by the end of Friday, a move some in the government have called calamitous – and yet financial markets appear to be unfazed by the “sequester.”

The across-the-board cuts have inspired doom-and-gloom scenarios, with government officials warning it would result in airport delays, furloughs in the Pentagon, reduced border security, lost access to Head Start for almost 5,000 low-income children – and potentially more forest fires and chicken shortages.

Previous fiscal showdowns in Washington – like the "fiscal cliff" standoff late last year – left investors jittery and the stock market wobbling. This time, analysts say, the market is ignoring Washington’s antics.

 
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