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.

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Stock Forecasts

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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.

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