Late Saturday evening congressional leaders and the current administration reached a deal on the financial bailout which includes a staggered spending rate and is open to companies who deny “golden parachutes” to senior executives leaving the company. A bailout is what Wall Street was looking for, as noted by the drastic swings in the past two weeks, but how is the market reacting to the news?
As of 12:01 AM Monday, September 29th, DOW futures are down 67 points showing that the market is heading to a lower open. Look at other markets currently open and one can see the rest of the world isn’t too excited about the plan either. The Nikkei is down half a percent and the Hang Seng is two percent in the red.
Maybe the poor performance of the market is due to the fact that the Bill still needs to be signed into law, maybe a poor economy is finally playing into the market, or maybe the stock market is unhappy with what is being proposed.
This week has the potential to be wild, let’ see what happens.
UPDATE: 12:36 AM
Asian markets are heading lower due to an increase in interest rates, sending property and resource stocks lower. Financial stocks, however, rose – it looks as if the financial markets are reacting in a positive manner to the bailout.
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