CHICAGO — Chicago Public Schools' teachers went on strike for the first time in 25 years Monday with market participants closely watching to assess the fiscal impact of an eventual resolution on the cash-strapped district while also gauging the national ramifications for governments facing labor strife and the November elections.

The teachers in the nation's third largest-district that operates 675 schools announced their intention to strike late Sunday. The action came after 11th hour negotiations between the Chicago Teachers Union and representatives of the district, the Chicago Board of Education, and Mayor Rahm Emanuel's office failed to reach agreement on a new contract.

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