Fears of a U.S. government shutdown loom over Wall Street as Congressional budget negotiations remain at an impasse ahead of a Oct. 1 deadline. But surprisingly, the stock market has historically gone up when the government shuts down, according to Raymond James. Despite the looming risks to the broader economy, Raymond James found that the S & P 500 has gained an average of 3.
30 Of the 12 appropriations bills that need to be passed by Congress and signed by President Biden, only one has been passed by the Republican-controlled House of Representatives. Government funding is set to expire on Sept. 30 and, without agreement on a new budget, will lead to a government shutdown, worker furloughs and the suspension of government programs and agency closures.