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How the Stock Market Performs During Government Shutdowns

Broader market conditions have a greater effect on the stock market than government shutdowns do.

By Lyle Daly – Oct 7, 2025 at 3:52PM | Reviewed by Jack Caporal

Key Points

  • The S&P 500 often rises following a shutdown. It has increased one month after each occurrence since 1980.
  • There is no clear link between shutdown duration and market impact; longer doesn't mean worse.
  • Investors usually prep for shutdowns, limiting surprise and economic disturbance.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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