How the House Speaker Race Is Impacting Wall Street

Other News
Reading Time: 4 minutes

United States House of Representatives or Office of the Speaker of the House, Public domain, via Wikimedia Commons


Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Michael Neuenschwander.

Price and Neuenschwander discuss the negative impact the crisis in the US House of Representatives is having on Wall Street.
The ousting of Speaker McCarthy in October 2023 has had a significant impact on the stock market. The uncertainty and political dysfunction surrounding the crisis has led to increased volatility and selling pressure in the market.In the immediate aftermath of McCarthy’s ouster, the Dow Jones Industrial Average fell by over 400 points. The S&P 500 index fell by over 2%, and the Nasdaq Composite index fell by over 3%.The market has since recovered some of these losses, but it remains volatile. Investors are concerned about the potential for a government shutdown or default on the US debt. They are also worried about the impact of the crisis on the US economy and the Federal Reserve’s ability to control inflation.In addition to the immediate impact on stock prices, the House Speaker crisis is also having a negative impact on investor sentiment. Investors are more likely to sell stocks when they are uncertain about the future. This lack of confidence can lead to a sustained decline in the stock market.The overall impact of the House Speaker crisis on the stock market is still difficult to assess. However, it is clear that the crisis is creating uncertainty and volatility in the market. This could lead to lower stock prices and reduced investment activity.Here are some specific examples of how the House Speaker crisis is impacting the stock market:Companies that are reliant on government contracts are seeing their stocks sell off. This is because there is concern that a government shutdown could lead to delays or cancellations of these contracts.
Companies that are sensitive to economic uncertainty are also seeing their stocks sell off. This is because the House Speaker crisis is raising concerns about a potential recession.
Companies that are seen as being politically aligned with the Republican Party are also seeing their stocks sell off. This is because the House Speaker crisis is seen as a sign of weakness within the Republican Party.Investors should carefully monitor the situation and make investment decisions based on their own individual circumstances and risk tolerance. They should also consider moving towards safer investments such as:
  • High-yield savings accounts: These accounts offer higher interest rates than traditional savings accounts, but they may have minimum balance requirements or withdrawal fees.
  • Money market funds: These funds invest in short-term debt securities, such as Treasury bills and commercial paper. They are more liquid than savings accounts and offer slightly higher returns.
  • Certificates of deposit (CDs): CDs offer a fixed interest rate for a specific period of time. They are generally considered to be very safe investments, but there may be penalties for early withdrawal.
  • Treasury bills, bonds, and notes: These are debt securities issued by the US government. They are considered to be very safe investments, but they offer lower returns than other types of investments.
  • Fixed annuities: These annuities offer a guaranteed stream of income for a set period of time. They can be a good option for people who are close to retirement or who need a guaranteed source of income.
In all financial decisions it is important to consult with a qualified financial expert.

A native Houstonian, Michael graduated from Texas A&M University with a Bachelor’s degree in accounting and a Master’s degree in finance. Grounded in the principles of his training as a CPA and CFP® and with nearly 20 years’ experience, Michael designs forward-thinking, taxefficient investment strategies for retirees and specializes in complex situations unique to high-net worth families.

While predicting the unpredictable is impossible, Michael’s holistic, indepth planning approach covers as many bases as possible to help you create a retirement strategy that addresses a variety of potential risks, tax situations and provide sustainable income streams for the length of your retirement. From tax-efficient strategies to investment advice to protecting some of your assets, he guides you in building a fiscal house to help support your lifestyle and long-term financial goals.

Michael is proud to serve as a fiduciary, building trust with his clients through due diligence, integrity and transparency. His priority is to help individuals and business clients turn the complex components of wealth management into easy-to-understand solutions for protecting and preserving their wealth while minimizing tax exposure. An educator at heart, Michael has written for Forbes and Kiplinger’s magazine, is co-author of “Retire Abundantly,” was a featured radio talk-show host and is often featured on Houston’s Fox 26 News. He is an 8-year award winner of the prestigious 5-Star Wealth Manager award that is only awarded to the top 5% of Financial Planners in the Greater Houston area.

Michael married his high school sweetheart, Rachel, and they are raising their two beautiful children, Ella and Hudson. He is a car enthusiast and enjoys home improvement projects and getaways to the beach or lake, as well as an occasional winter vacation to the mountains for skiing. Of course, no fall would be complete without at least several trips back to College Station to attend an Aggie football game with friends. 

Learn more at


Check out more national news stories here. 


Share This:

Leave a Reply

The reCAPTCHA verification period has expired. Please reload the page.