Does the government shutdown affect the stock market? Experts weigh in

house GOP leaders scramble to reach a deal to avoid a partial government shutdown before Friday’s deadline, but experts say the shutdown is likely to have little impact on the stock market — and may even help it, given the circumstances.

The last-minute wrangling comes after the initial agreement between the two parties received a torrent of criticism from conservatives amid a push from the incoming president. Trump administration To rein in government spending.

“A government shutdown will not lead to a nuclear meltdown in the markets, but it will create short-term volatility — but only for a few trading sessions since investors believe President Trump will use his mandate to pass it,” says investment and finance expert Eric Schiffer, president of the Patriarch Organization.

Ted Jenkin, co-founder of oXYGen Financial, dismissed concerns that the lockdown would have any significant impact on the markets, saying: Fox Business“If there is any silver lining about the growing financial dysfunction on Capitol Hill, it is that we have enough history to show that a government shutdown has little impact on investors or financial markets.”

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Markets could be affected by the shutdown, depending on how long it lasts, Chris Markowski, founder of Markowski Investments, said in an interview. But in general, concerns about decommissioning are often overblown.

“I think what happened over the last couple of days was kind of unusual in the sense that a lot of people were flocking to phone banks in D.C. to basically say that’s enough,” Markowski told FOX Business. “We didn’t vote for this. We need to stop all this ridiculous spending.”

National Debt Tracker: American Taxpayers (You) Are Now on the Hook for $36,189,345,826,140.62 as of 12/18/24

Markowski said shutdown scares happen at Christmas time every year, and he says that in any other year, lawmakers would have already gone home for the holidays by now. But this year, “there are actually taxpayers stepping back.”

Markowski believes investors may be encouraged by the lockdown due to the possibility that the government will eventually cut spending, which will eventually lead to… Stronger markets.

He noted that one of the largest items in the federal budget is interest on the national debt, which now exceeds $36 trillion.

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“You can’t run a family like that. You can’t run a business like that, but that’s the way we run our country at this time,” he said.

“I’m sick and tired, frankly, like most taxpayers,” Markowski said. “It’s not so much about paying our taxes — which we have to do — it’s the fact that they are wasted on a regular basis.”