Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today
On Wednesday, the U.S. government ground to a halt. Stock markets, however, jumped — one benchmark even hit a record high.
Traders in prediction markets are betting the shutdown will last nearly two weeks. Nothing too radical, since that’s the average length it takes for the government to reopen, based on data going back to 1990 from Bank of America
The government stoppage isn’t putting the brakes on the stock market momentum. Are investors getting too adventurous? Well, history shows the pattern is not new. The S&P 500 has risen an average of 1% the week before and after a shutdown, according to data from BofA.
Even the ADP jobs report, which missed expectations by a wide margin, did little to subdue the animal spirits. Private payrolls declined by 32,000 in September, according to ADP, compared with a 45,000 increase estimated by a Dow Jones survey of economists.
