As of now, the U.S. government is still on track to shutdown tomorrow in the absence of a spending plan for the new fiscal year approved by the nation’s leaders. Forecasting what the market reaction to this will be is difficult since reactions to previous shutdowns have varied.
Reuters has looked at the 11 U.S. government shutdowns that have occurred since 1981 and charted the S&P 500 performance before, during, and after each. Generally, the performance after a shutdown period has ended has been positive. The most recent shutdown in 1995 was followed by the S&P 500 gaining nearly 5% in one month.
Via: floatingpath.com
