Fiscal Responsibility

WSJ: Stocks Post Biggest Weekly Fall in a Year

While Republicans wasted time this week on a partisan Default Bill, U.S. stocks posted the biggest weekly decline in a year. Our economy needs certainty, but Republicans continue to hold it hostage to their ideological agenda. With only a few days left until a potential default, Republicans must work with Democrats on a long-term agreement that pays our bills, reduces the deficit and gives businesses and the markets certainty they need.

From the Wall Street Journal:

“U.S. blue-chip stocks fell, posting the biggest weekly decline in a year, as a blur of debt-ceiling developments left the market uncertain over the course of Washington's deadlocked negotiations.”

“The Dow Jones Industrial Average closed down 96.87 points, or 0.79%, to 12143.24, in a volatile session. The blue-chip index, which dropped as much as 157 points earlier in the day, has suffered six straight declines dating to last Friday.”

“Stocks recovered much of the early losses and even briefly turned positive after President Barack Obama stepped up pressure on Congress to compromise on raising the nation's debt ceiling. But the market languished through much of the afternoon before closing lower.”

“The Standard & Poor's 500-stock index fell 8.39 points, or 0.65%, to 1292.28, led lower by energy and material stocks. The technology-oriented Nasdaq Composite sank 9.87 points, or 0.36%, to 2756.38.”

“Mr. Obama's comments came as the House postponed a vote late Thursday, due to a lack of support from conservative GOP members, on a plan from Speaker John Boehner to raise the U.S. borrowing limit.”

"The delay leaves the government's credit status in question just days before the U.S. begins running out of money to pay its bills. House Republican leaders plan to amend and bring to a vote later Friday their stalled budget bill in a bid to win more votes.”

“‘There are still a lot of moving pieces,’ said Phil Orlando, equity strategist at Federated Investors. ‘The market's been whipping around all day, and it will continue until we get some sort of confirmation out of Washington that we have a deal.’”