Commentary

Historically, shutdowns have temporarily affected multiples, not much else

The impact of government shutdowns on financial markets has been limited and short-lived.

By: Denise Chisholm

Updated: 2/26/2025

Key Takeaways

We’ve seen 20 or so instances of government shutdowns since the ‘70s, many lasting only hours with a handful coming one right after the other.
Aggregating the latter together, a rolled-up dataset shows five instances lasting 15 days or more. Examining those five, you find very little long-term impact on earnings or industrial production, and hence very little long-term impact on markets.

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Historically, shutdowns have temporarily affected multiples, not much else

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