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Debt Ceiling Debate Weighs on S&P 500

Dan Dzombak
October 9, 2013

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Fear over the debt ceiling has stock markets mixed today. As of 1:40 p.m. EDT the S&P 500 (SNPINDEX: ^GSPC) is up just 0.19% to 1,659 points. The largest ETF tracking the S&P 500, SPDR S&P 500 (NYSEMKT: SPY), is up a similar 0.17%. The markets were looking fearful earlier as the CBOE Volatility Index (VOLATILITYINDICES: ^VIX), also known as the "fear index," started the day up 4%. However, as stocks have drifted higher throughout the day, the index has fallen 4.2% into the red.

Yesterday, China reached out to the U.S. to express its concern over a potential default by the U.S. government. China has roughly 1.3 trillion reasons to be concerned, because it's the second-largest holder of U.S