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Investors Shake Off Fears From Sequester

Matt Thalman
March 1, 2013

The Dow Jones Industrial Average (INDEX: ^DJI) quickly fell more than 117 points this morning, after the Senate failed to pass bills that would have stopped the $85 billion in automatic government spending cuts, known as the sequester, from going into effect today. But because of some positive economic numbers, the bears couldn't hold the markets down.

This afternoon, the Dow rallied, closing the day up 0.25%, followed by the S&P 500, which gained 0.23%. Most market participants are claiming that the stronger-than-expected ISM manufacturing numbers gave the bulls a reason to forget about the possible future problems caused by the sequester.

The Dow's downers
Unfortunately, not all of the Dow's components ended the day on a positive note. Shares of both of the index's major energy stocks closed down.

Chevron (NYSE: CVX) lost 0.21%, while ExxonMobil (NYSE: XOM) dipped lower by 0.13%. The moves were likely caused by the U.S. Energy Department's weekly report on U.S. crude inventory levels, which came out this afternoon. The report showed that inventor