Government shutdown and the stock market: Here's what history shows usually happens

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Markets aren't big fans of government shutdowns, historically.

New number crunching out of RBC Capital Markets strategiston Monday found that in the lead-up to the last seven government shutdowns dating back to 1976, the median S&P 500 decline was 10.2%.

In the 12 months following a government shutdown of 10 days or more, the S&P 500 has gained a median of 18.9%, according to RBC's research. Data analysis along these lines is critical for investors at the moment as the government knocks on the door of another shutdown.

 

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