Impact of US government shutdown far worse than expected, White House adviser says
1. U.S. government shutdown's economic impact exceeds expectations. 2. Quick rebound anticipated post-shutdown, positively affecting the S&P 500.
FAQ
Why Bullish?
Historically, rapid recoveries after shutdowns have led to market gains. For example, the S&P 500 surged following the end of past shutdowns, as investor sentiment improves with restarting economic activity.
How important is it?
The government's actions during and after the shutdown can dictate economic performance, directly impacting investor confidence and S&P 500 prices.
Why Short Term?
Immediate effects of government stability are likely to influence the S&P 500 in the upcoming weeks. However, the long-term impact depends on subsequent economic policies and recovery post-shutdown.