Will a government shutdown impact the stock market? Experts weigh in
Published On Dec 19, 2024, 4:13 PM
Experts suggest that a government shutdown may not significantly impact the stock market and could potentially lead to short-term volatility. Some believe that it could be a positive sign for the market as it may indicate a push to reduce excessive government spending. Historical trends show that government shutdowns typically have minimal effects on financial markets in the long run, with investor sentiment leaning towards stability under President Trump's influence on fiscal policy.
Stock Forecasts
SPY
Positive
The SPDR S&P 500 ETF Trust (SPY) could see positive momentum if the shutdown is perceived as a step towards fiscal responsibility, alleviating investor concerns about government spending. Thus, short-term fluctuations might provide buying opportunities.
Related News
Stock market today: Dow, S&P 500, Nasdaq bounce back from Fed-fueled rout
Dec 19, 2024, 9:37 AM
Stocks are looking to bounce back from their worst day since the summer.
Wall Street's fear gauge — the VIX — saw second-biggest spike ever on Wednesday
Dec 19, 2024, 9:14 AM
The CBOE Volatility Index (.VIX) surged 74% to close at 27.62, up from around 15 earlier in the day.
Government shutdown odds are rising. Economic experts aren’t panicking (yet).
Dec 19, 2024, 8:33 AM
Washington could be barreling towards yet another spending crisis, but the initial reaction from economic watchers was to downplay the prospect of a protracted shutdown.