What Assets Perform Well During a Government Shutdown
Update: 2025-09-30
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The S&P 500 remained relatively flat, with analysts noting historically positive market performance during government shutdowns. According to data presented, during the 35-day shutdown in 2018-2019, the S&P actually gained about 9%. Silver historically outperforms during government shutdowns, prompting several traders to enter short put spreads at the $45-45.25 level on the day's 1% dip. Gold also tends to perform well during shutdowns, though typically not as strongly as silver. Without economic data releases during a shutdown, markets may experience sideways trading, potentially benefiting iron condor strategies. Rate cut probabilities increased despite the looming shutdown, with markets now pricing a 96.7% chance of an October cut and 76% for December. Agricultural commodities continue facing pressure from record yields and limited Chinese purchasing, with corn, soybeans and wheat all down over 1%.
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