Stocks Remain Flat Following Passage of Stopgap Spending Bill
President Biden signed a bipartisan spending package, preventing a government shutdown and funding federal operations through mid-March. The bill was reduced from 1,500 pages to around 100 and does not include a debt ceiling increase or a proposed 3.8% raise for Congress members.
Markets reacted negatively, with the S&P 500 down 1.7% since December's start. The Nasdaq gained 1.4% but lost nearly 3% last week. Tom Essaye from Sevens Report Research links the downturn to hawkish Federal Reserve commentary, political instability, and disappointing jobless claims data, suggesting it could indicate future market uncertainty.
The S&P 500 and Nasdaq were flat during Monday’s session, up 0.6% and 1%, respectively. Market activity is expected to be subdued this week due to fewer trading days.
Bitcoin has declined about 13% from its peak of over $108,000. Analysts note that cryptocurrencies often show mixed returns at year-end, with macro conditions playing a crucial role in predictions. James Toledano from Unity Wallet states that while low liquidity may increase volatility, the lack of major institutional activity might stabilize prices. Investor sentiment will be influenced by upcoming ETF approvals and broader macro trends.