So lame: What to expect in the last days of a Republican Congress
SPY•TD Cowen expects poor attendance to stall partisan Republican efforts during the remaining legislative days, with nominations and government funding among likely priorities. U.S. stocks plunged, with the Nasdaq down about 4% and the S&P 500 and Dow down more than 2%.
1. Congressional agenda
TD Cowen analysts Chris Krueger and Justin Soto expect poor attendance after at least 71 representatives and around 20 senators lost their seats in Tuesday’s election to weigh on the Republican agenda. They expect nominations, judges and government funding, including the National Defense Authorization Act, to be priorities. The note says the debt ceiling must be raised, while budget reconciliation needs to move soon or may fail.
2. Markets fall
U.S. stocks plunged, with the Nasdaq down about 4% and the S&P 500 and Dow down more than 2%. Every S&P 500 sector was lower, with technology posting the biggest percentage decline. The 10-year Treasury yield dipped to about 4.84%, while gold rose more than 1% and U.S. crude gained about 2%.
