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A government shutdown is looming. Here’s what history says could happen to stocks.

1. Congress faces an Oct. 1 deadline to pass funding or face shutdown. 2. Past shutdowns have coincided with S&P 500 gains, despite federal furloughs. 3. Recent research shows a 56% chance of a government shutdown. 4. Negotiations on healthcare subsidies could affect future funding agreements. 5. House Republicans plan to vote to avert shutdown by Friday.

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FAQ

Why Bullish?

Historically, the S&P 500 has increased during shutdowns, suggesting investor resilience.

How important is it?

Previous shutdowns led to market gains; current dynamics suggest similar trends.

Why Short Term?

Immediate market response expected as shutdown deadline approaches; past trends support this view.

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