Understanding the Impact of the Government Shutdown

Understanding the Impact of the Government Shutdown

Understanding the Impact of the Government Shutdown

  • Rating agency Standard and Poor’s estimates the overall impact from the partial government shutdown could shave a modest $1.2 billion off the $19 trillion U.S. economy for each week the shutdown continues.
  • Historically, the U.S. stock market has proven resilient during past shutdowns. A review of market performance during the 20 government shutdowns dating back to 1976 shows that, on average, the Standard & Poor’s 500 stock index (a broad gauge of the U.S. market) has posted a decline of 0.4%. In addition, the S&P 500 Index climbed during 12 of the past 21 shutdowns and rose an average of 13% in the 12 months after the government reopened.
  • The U.S. government shutdown will not have an immediate impact on the country’s economy, but a prolonged crisis could impact longer-term economic growth as turmoil in Washington continues.

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The information contained in this presentation does not purport to be a complete description and is intended for informational purposes only. Any opinions are those of the content creator and not necessarily those of the named advisor(s), JWC or JWCA.  It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

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