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S&P 500
CNBC
5 mins

Jim Cramer explains why he thinks a government shutdown won't have a big impact on the market

1. Government shutdowns typically don't significantly impact the stock market. 2. Shutdown could delay key economic data vital for Federal Reserve decisions. 3. Previous shutdowns had mixed effects on stock performance and GDP growth. 4. If prolonged, shutdown may negatively affect consumer spending and employment. 5. Cramer emphasizes calm amid shutdown uncertainties, indicating limited short-term impacts.

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FAQ

Why Neutral?

Historically, shutdowns have not led to consistent stock declines, and gains were noted. Ongoing data delays could cause uncertainty, but the historical context mitigates panic.

How important is it?

The potential delay of critical economic data could affect Federal Reserve's monetary policy, influencing investor sentiment and market stability, which is crucial for the S&P 500.

Why Short Term?

The shutdown's immediate effects would be felt quickly, particularly in economic data release delays. However, potential long-term consequences depend on the duration of the shutdown.

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