Stocks finished higher on Thursday, but oil broke down again, bonds rallied, and after the US market closed, futures and oil were continuing to grind lower.
Dave Lutz at JonesTrading circulated an email after the close, writing that, “Oil is breaking down another 1% after the 4pm equity close (nearing $US59), and no deal from Congress yet has peeps buying protection hard — with VXX up $US1 and UVXY up $US2. That hedging is hitting futures 6 points after the close.”
Here’s chart of oil after the market close, with WTI crude touching $US59.01 at around 5:00 pm ET.
Lutz added that traders are also worried about developments out of Washington, DC, where lawmakers on Thursday failed to pass a preliminary measure keep the government funded.
The government is currently funded only until midnight tonight.
Last we heard: “Could be a very late night/early morning on Capitol Hill, with midnight deadline for some short or long-term budget action necessary to prevent a government shutdown. House Republican leaders, clearly shaken by their razor-thin victory on a key procedural vote earlier today, are delaying a final vote on a $US1.1 trillion fiscal year 2015 spending package. House Republicans are expected to meet shortly and the GOP leadership will spend that session counting votes. It may be clear after that meeting when the House will vote on the spending bill.”