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13 March 2013
The stock market’s response to the “sequester”—the $85 billion reduction in annual spending by Washington that took effect March 1—wasn’t quite what many expected.
After the nation’s leaders failed to reach a budget deal that would have averted the painful budget cuts, the market might have fallen like a rock. Instead, it didn’t do much of anything—investors basically shrugged. Then a few days later, with signs that the economy was strengthening, investors pushed the Dow Jones Industrial Average to an all-time high.