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Benzinga
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Government Shutdown Odds Hit 75%: What Happened To Markets During 2018-2019 Shutdown?

1. Major indexes near all-time highs risk declines amid government shutdown fears. 2. Oct. 1 deadline approaches with rising likelihood of government shutdown. 3. Historical shutdowns show potential for short-term volatility and eventual recovery. 4. Last shutdown in 2018 led to a 2.6% ETF drop initially, then a strong recovery. 5. Investors remain cautious as political tensions escalate around funding negotiations.

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FAQ

Why Bearish?

Market uncertainty tied to potential government shutdown creates negative sentiment. Historical data shows initial stock drops before recoveries.

How important is it?

Government shutdowns historically influence market sentiment and can cause volatility, impacting investor confidence.

Why Short Term?

Impact anticipated shortly around the Oct. 1 deadline, but historical rebounds suggest a potential long-term recovery.

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