How Long Will the Government Shutdown Last?

Wednesday marks day one of the government shutdown, with the key question being how long it will last before a funding deal is reached. The last time that the government closed was in 2018 over a border wall funding dispute. That shutdown spanned a record 35 days.

The U.S. has experienced 22 government shutdowns since 1976, with each federal closure averaging 8.2 days, according to data compiled by Carson Research. The shortest shutdown, in 1980, lasted just one day. Several other shutdowns have lasted 2, 3, and 4 days.

Dan Niles of Niles Investment Management believes the current shutdown could surpass the record of 35 days. Meanwhile, third-quarter earnings, AI development, and the upcoming Federal Open Market Committee meeting will guide the stock market's direction. "The market will ultimately see new highs as it slowly grinds higher," Niles said.