Investors look to Wall Street as the government shuts down
All attempts for a final funding solution and agreement on health care failed on Capitol Hill Monday, throwing Congress and the nation into the country’s first government shutdown in over a decade at midnight.
But what does it mean for the stock market rally? As of Monday night, the HW 30 -- an index of housing and mortgage-related stocks -- was down on just the expectation of a shutdown. Federal agencies, including the Department of Housing and Urban Development, were already prepared to close, which means only a few hundred of HUD's employees will stay on the job.
Banking analyst Dick Bove with Rafferty Capital Markets noted that most of the housing economy -- including Fannie Mae and Freddie Mac -- is funded separately and not impacted by the shutdown.