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How Do Markets Respond to Government Shutdowns? -- WSJ

Dow Jones2025-10-01

By Chelsey Dulaney and Quentin Webb

In short, with a yawn historically.

Markets have averaged a 0.05% gain across 20 government shutdowns since 1976, according to Dow Jones Market Data. While the disruption can weigh on business-and delay important data releases-the economy often makes up for any lost ground once the government reopens.

For investors, shutdowns are often overshadowed by broader economic and geopolitical events. During a 34-day partial shutdown in President Trump's first term, markets' focus was on thawing U.S.-China trade relations, and the health of the wider economy.

Stocks climbed 10% in that period, which started in December 2018.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 01, 2025 07:40 ET (11:40 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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