What do Government Shutdowns really mean?

The U.S. government officially shut down on October 1, 2025, after Congress failed to pass funding.

Historically, shutdowns have been market nuances rather than red flags. The S&P 500 has risen during nearly every shutdown since 1990.

The longest recent shutdown was in 2018-2019 and lasted 35 days. It cost the economy billions, but had little lasting impact on stocks.

What's different now:

• Credit stress is creeping in.
• Key data, such as job and inflation reports, is delayed, which reduces clarity amid rate decisions.
• Bitcoin and gold are rallying despite uncertainty.

Markets see this as more of an issue, not a major crisis. Based on history, investors expect any disruption to be short-lived.