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The U.S. Capitol is seen on the second day of the federal government shutdown on October 2, 2025, in Washington D.C.<\/p>\n
Mehmet Eser | Anadolu | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
With the government shutdown<\/a> nearing its one-week mark, investors may be monitoring how the stalemate<\/a> in Washington is affecting their portfolios<\/a>.<\/p>\n So far, stocks have been doing just fine. Although the S&P 500<\/a> was down slightly on Tuesday<\/a>, the index returned 0.80% between Oct. 1 and Oct. 6 \u2014 and even notched several new highs<\/a>.<\/p>\n And it turns out that market gains during and following a government shutdown are not unusual.<\/p>\n \u201cHistorically, shutdowns themselves have rarely derailed equities,\u201d said Cathy Curtis, a certified financial planner and the founder and CEO of Curtis Financial Planning in Oakland, California. Curtis is also a member of\u00a0CNBC\u2019s Financial Advisor Council<\/a>.<\/p>\n<\/div>\n The S&P 500 spiked 36% during the year after the last government shutdown, ended in early 2019, Morningstar Direct found. One hundred days following the 1982 shutdown, the index was up 19.7%.<\/p>\n \u201cMarkets are forward-looking and tend to price in future conditions, not current noise,\u201d said Andrew Hiesinger, founder and CEO of Quant Data, a market information platform.<\/p>\n Post-shutdown gains aren\u2019t universal. For example, 100 days after the January 2018 shutdown, the S&P had fallen 4.5%, and was still down 3.1% at the one-year mark.<\/p>\n<\/div>\n The stock market isn\u2019t performing too poorly during the current shutdown because investors are betting on softer inflation and eventual rate cuts from the Federal Reserve, Hiesinger said.<\/p>\n \u201cThe market has learned to discount recurring political drama that rarely changes long-term fundamentals,\u201d he added.<\/p>\n<\/div>\nMarkets don\u2019t price in \u2018current noise\u2019<\/h2>\n