Stock market today: Dow set to fall further after infrastructure bill is shelved

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Congress faces the challenge of raising or suspending the US debt ceiling by October 18.

Samuel Corum / Getty Images

The stock market was down on Friday after a vote on the $ 1 trillion infrastructure package at the heart of President Joe Biden’s economic agenda was suspended Thursday evening, hours after a government shutdown was narrowly avoided.

Future for the


Dow Jones Industrial Average

showed an open 200 points lower, after the index fell 546 points on Thursday to close at 33,843.


S&P 500

and


Nasdaq

signaled an equally weak start.

Overseas, Asia, Japan


Nikkei 225

fell 2.3% as the Chinese markets closed. The pan-European


Stoxx 600

was down 1%.

Markets reacted to the cancellation of the vote on the $ 1 trillion infrastructure bill.

The delay came amid debate among Congressional Democrats over the second part of Biden’s agenda – a $ 3.5 trillion budget reconciliation program focused on America’s social safety net and anti-change initiatives climate.

“The problem is that some of the more progressive members of the House Democrats don’t want to vote for [the $1 trillion bill] without the larger reconciliation package, which contains much of Biden’s agenda on social programs, ”said Jim Reid, strategist at Deutsche Bank.

“They are concerned that the vote on the infrastructure bill will see the moderates cut back on spending on the reconciliation bill, so they are using their infrastructure votes as leverage,” Reid added.

Read also : House delays infrastructure vote as divisions persist among Democrats

Congress also faces the challenge of raising or suspending the US debt ceiling by October 18 to avoid the first federal default in the country’s history.

The postponement of the vote on the infrastructure bill came after a government shutdown was narrowly avoided, with Biden signing an interim bill funding the government until December 3 just hours before the expiration funding.

“If this all sounds like a mess it is, and the markets are responding appropriately as the nerves unravel,” said Jeffrey Halley, analyst at brokerage Oanda.

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