Government Shutdown Starts: Here's What Investors Need to Know Now

Group 1 - The federal government shutdown began on October 1 due to Congress's failure to agree on funding, primarily over Obamacare subsidies [1] - Over half a million federal employees were furloughed, with the Defense Department's civilian workforce being the most affected [2] - Services such as the monthly unemployment report from the Bureau of Labor Statistics will be impacted, and government properties like national parks will face restrictions [2] Group 2 - The shutdown has both near-term and long-term impacts on the economy, potentially exacerbating an already weak labor market and dampening consumer spending, particularly in the Washington, D.C. area [3] - Historically, government shutdowns have not significantly affected the stock market, with the S&P 500 averaging a gain of just 0.05% during past shutdowns [5] - The current shutdown occurs amid a rapidly weakening labor market, raising concerns about the potential for a recession if it extends [7][8]