Government Shutdown? Markets Don’t Flinch

The Markets Don’t Miss What Doesn’t Matter Let’s start with the headline insight from the article: government shutdowns barely dent the stock market. The S&P 500, historically, sees only a 1.6% average drawdown during these so-called crises. In some cases—like in 2018—the market even rallied during a 35-day freeze. "I don't think a government shutdown is a bad thing at all," Slatestone Wealth strategist @KennyPolcari says. "The market always tends to ignore a shutdown. It might have an initial negative reaction, [but] … the shutdown is not going to price stocks in the long term." pic.twitter.com/j5nKdH9RZg — Yahoo Finance (@YahooFinance) October 2, 2025 That alone should tell you something terrifying and beautiful: the private sector doesn’t need the government nearly…