Following a three-day stalemate, Congress voted to reopen the government this Monday. The Senate ultimately agreed to pass a spending bill that funds the federal government for three weeks, and supports the Children’s Health Insurance Program for six years. The Senate is also expected to negotiate an immigration deal and vote on a bill within the three weeks of open government.
While this brief reopening shows that the government is making progress, there may still be a potential threat to financial market safety as budget caps are finalized. In addition to an immigration deal, Congress must decide on a permanent 2018 spending deal. Stocks can be a good option for investors during volatile times like these. Since government shutdowns tend to be short-lived, stocks are likely to experience little negative impact.
See the chart in this article for a view of stock market trends during past government shutdowns.