NEW YORK: Investors worried about whether a looming government shutdown could slow US stocks' recent surge can take comfort in history: markets have tended to shrug off shutdowns despite their potentially nasty economic impact.
The S&P 500 and Nasdaq composite indexes touched all-time highs on Thursday as investors looked past bleak economic data, while remaining focused on a COVID-19 vaccine. Failure by the Democratic-controlled House and Republican-controlled Senate to pass a bill on how to allocate around US$1.4 trillion to be spent by Sep 30, 2021, when the fiscal year ends, could have dire consequences.
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