White House Says Averting Default Is Responsibility Of Every Single Member Of Congress; Millions Of Jobs Would Be Lost, And Recession Could Follow; Preventing A "Catastrophic Default" Is Not A Concession
Portfolio Pulse from Happy Mohamed
The White House states that averting a default is the responsibility of every member of Congress, warning that millions of jobs could be lost and a recession could follow if a catastrophic default occurs.
May 24, 2023 | 6:56 pm
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A potential default could negatively impact the stock market, including the SPDR S&P 500 ETF (SPY), as investors may react to the increased risk of recession and job losses.
A default would signal a failure of the US government to meet its financial obligations, leading to increased uncertainty and risk in the market. This could result in a sell-off of stocks, including the SPY ETF, as investors seek safer assets. The potential for job losses and a recession would further exacerbate the negative impact on the stock market.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75