End the Shutdown, Buy the Dip
Democrats are trying to figure out what went wrong. Asset prices never cared.
Claudio Descalzi of Eni SpA rings the bell as Wall Street rushed into risk.
Photographer: Michael Nagle/BloombergTo get John Authers’ newsletter delivered directly to your inbox, sign up here.
Nothing became the US federal government shutdown like the ending of it. Late Monday, the Senate passed a temporary funding measure that would allow a reopening, paving the way for the House to hold its own vote Wednesday. Ahead of the Senate vote, markets reacted with joy.
This was surprising on several levels. First, it was amazing that it was the Democrats, not Republicans, who conceded. Only last week, they’d won big in midterm elections, a victory widely attributed (even by the president himself) to the shutdown. As they were ahead in political battle, many Democrats were baffled (and infuriated) that eight of their senators had decided to stand down. Many found the timing of the concession close to inexplicable.