Not a big move so far. But a roughly three-quarter point drop in S&P futures for a Monday does not bode well. And Asia ex-Shanghai looks to go red. I would not be surprised to see the markets down 2 percent on Monday, though of course that’s pure speculation.
And then there’s this Reuters piece:
While most on Wall Street continue to believe it very unlikely the United States will default on its debt later this month, banks and securities firms are already gearing up for how to handle any U.S. Treasuries tainted by missed payments.
Borrowing costs could surge for businesses and consumers and the stock market could plunge. The Treasury warned on Thursday that a default could trigger a financial crisis and the worst recession since the Great Depression.
SIFMA will be on high alert for a default beginning on October 16, the day before the Treasury says it might be forced to stop adding to the national debt.
Playing with nitroglycerin is so much fun… according to the Republican Congress.
And then there’s this:
Art Cashin says traders have a very cynical explanation for why the government shutdown fight hasn’t been resolved yet.
Cashin, UBS’ director of floor operations at the NYSE, told CNBC’s Bob Pisani around midday that “they don’t want to cut it off because both sides are getting partisan donations pouring like a water faucet in as long as they go nose to nose.”
Cashin predicts that once the contributions start to dry up, Congress will go back to “doing the people’s business.”