Jay Soloff

The major US indices are retreating from all time highs on December taper expectations. Technology is down the most so far, with the NASDAQ losing 1% on the day. Investors now believe the Fed will more likely taper in December as the government appears it will avoid another shutdown. That's on top of the recent slate of positive economic data. Basically, negotiators form both parties (from both chambers of Congress) agreed to a budget deal which will reduce the automatic spending cuts by $60 billion over two years. However, no debt ceiling agreement is part of the deal, so another showdown could take place before February. Still, avoiding the debacle from October is a good start for the embattled Congress - that is assuming the House and Senate both vote to pass the deal. Let's see if that actually happens.


Please sign in to comment on this wire.