According to the Congressional Budget Office, the 35-day federal government shutdown cost the economy $11 billion as a mix of lost output from federal workers, delayed government spending and reduced demand.
The report estimated that $3 billion, or 0.1 percent, was lost in economic activity during the fourth quarter of 2018 as a result of the governmental stalemate. The CBO estimated that an additional $8 billion, or 0.2 percent was lost during the first quarter of 2019.
“Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business,” the report said. “Some of those private-sector entities will never recoup that lost income.”
Trump: “Opportunity for All Parties to Work Together”
U.S. President Donald Trump announced last Friday that a deal was reached with congressional leaders to reopen the government temporarily, ending a shutdown that was in its 35th day.
At a White House press conference, Trump said he hopes to sign the latest measure that includes restarting government operations through Feb. 15. Trump previously pledged not to sign spending legislation unless it included a $5.7 billion proposal for a border wall.
As part of this latest deal, Trump said a conference committee would put together a Department of Homeland Security appropriations bill.
“This is an opportunity for all parties to work together for the benefit of our whole, beautiful, wonderful nation,” Trump said while speaking the White House Rose Garden.
However, Trump reiterated that the border wall remains a high priority.
“We really have no choice but to build a powerful wall or steel barrier,” said Trump. “If we don’t get a fair deal from Congress, the government will either shut down on Feb. 15, again, or I will use the powers afforded to me under the laws and the Constitution of the United States to address this emergency. We will have great security.”
Leveraged S&P 500 ETFs React
Leveraged S&P 500 ETFs such as the Direxion Daily S&P 500 Bull 2X ETF (NYSEArca: SPUU) and the Direxion Daily S&P500 Bull 3X ETF (NYSEArca: SPXL) were trading lower on Monday. As a result of weaker revenue guidance from Nvidia and lesser-than-expected earnings from Caterpillar, SPUU was down 2.14 percent while SPXL was down 3.5 percent.
SPUU seeks daily investment results equal to 300% of the daily performance of the S&P 500® Index. SPUU invests at least 80% of its net assets in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
SPXL also seeks daily investment results that equal 300% of the daily performance of the S&P 500® Index. Like SPUU, the fund invests at least 80% of its net assets in securities of the index,
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