Government shutdown impact on stock market
Search documents
As Record 40-Day Shutdown Nears End, History Shows Stocks Rally 12 Months Later With S&P 500 Averaging 12.3% Gain - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), American Airlines Group (NASDAQ:AAL)
Benzinga· 2025-11-10 06:11
Core Insights - The U.S. Senate is preparing to vote to end a record-breaking 40-day government shutdown, which could provide relief to federal workers and positively impact the economy [1] - Historical data indicates that the S&P 500 has averaged a 12.3% gain in the 12 months following past government shutdowns, with a 91% win rate for investors [2] - The current shutdown has resulted in minimal market movement, with the S&P 500 gaining only 0.6% during this period [3] Government Shutdown Impact - A bipartisan agreement has been reached among centrist Senate Democrats and GOP leaders to temporarily fund the government through January, combining a short-term funding extension with three full-year spending measures [4] - The shutdown has caused significant disruptions, including over 220 flight cancellations by American Airlines due to air traffic controller shortages and delays in federal food aid, particularly affecting SNAP benefits [5] Market Performance - Recent market performance has been mixed, with the S&P 500, Nasdaq 100, and Dow Jones indices experiencing declines of 2.23%, 4.04%, and 1.49% respectively over the last week, although they closed mixed on Friday [6] - Futures for the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Monday, indicating potential recovery [7]