Derivatives Strategy: Shutdown and Border Wall

derivatives strategy: Read The government shutdown has become the longest on record History shows past shutdowns have had a negligible impact on stocks, according to Market Watch. So far, that's been the case with the partial shutdown that began on Dec. 21 and entered its 26th day on Wednesday with no end in sight with congressional Democrats and President Donald Trump at an impasse over his demand for funding for a 5.3 billion border wall. Two key risks that we highlighted in the past Fed's monetary policy and trade war have subsided, but new risks have emerged U.S. government shutdown and signs of additional slowdown outside the U.S., wrote Marko Kolanovic, global head of quantitative and derivatives strategy at JPMorgan, in a Wednesday note. The closure has far exceeded the prior record, a 21-day shutdown during the Clinton administration that began in December 1995. The rebound has been attributed in part to a softer tone from the Federal Reserve when it comes to future rate increases, efforts by China to stimulate its economy, and a relative lack of negative news surrounding the U.S.-China trade spat. Read Trump on conference call with supporters We'll be out on shutdown for a long time' Since Dec. 21, the S&P 500 SPX, 1.32% rallied 8% through Tuesday's close as stocks bounced back from a December selloff that took the index below 2,400 on Christmas Eve before giving way to a rebound that saw the large-cap index and the Dow Jones Industrial Average DJIA, 1.38% exit correction territory. (news.financializer.com). As reported in the news.