US stock futures drop after Trump-backed bill fails, increasing government shutdown possibility

From Investing.com: 2024-12-19 22:29:41

U.S. stock futures dropped in Asian trade as a spot-gap spending bill supported by President-elect Donald Trump was voted down in Congress, increasing the possibility of a government shutdown. fell to 5,912.50 points, to 21,263.0 points, and to 42,661.0 points by 22:10 ET (02:10 GMT).

Policymakers assembled a last-minute bill including Trump’s demands for higher government spending and a raised debt ceiling, but the bill was rejected in a 174-235 vote in the House of Representatives. Trump and Elon Musk opposed the old bipartisan deal, leading to the new bill.

If government funding expires at midnight on Friday, it could trigger a partial government shutdown affecting operations like border security and travel. The disruption is concerning during the busy holiday season, with increased travel expected.

Trump and Musk criticized the old bill for wasteful provisions benefiting Democrats. The revised bill, with some provisions removed and national debt limits for two years, aligns with Trump’s goal of passing tax cuts.

A government shutdown adds to uncertainty for Wall Street, which is already recovering from losses after the Federal Reserve cut interest rates but projected slower cuts in 2025. Friday’s focus includes key November data, a crucial factor in interest rate outlooks.



Read more at Investing.com: US stock futures drop as Trump-backed spending bill fails to pass By Investing.com