Stocks face earnings test with S&P 500 on pace for worst performance in a shutdown since 1990

Understanding financial news often boils down to grasping how numbers change over time. From investment gains and losses to inflation rates, percentages are the universal language. Whether it's a stock market shift or calculating a simple discount, knowing how to find a percentage increase helps you make informed decisions about your money.

What Happened

Historically, government shutdowns have shown varied impacts on the stock market. During the 2018-2019 shutdown, for instance, the S&P 500 actually gained 3.4% over 27 trading days. While that period saw resilience, the current market context suggests a tougher earnings test for stocks, leading to concerns about the S&P 500 potentially heading toward its worst shutdown performance since 1990.

Why Percentages Matter Here

Percentages are crucial for quantifying financial performance. They allow us to standardize changes, making it easy to compare different time periods or assets. You can use percent increase or decrease to model investment growth, track index movements, or even determine what percent of a number a company's profit represents against total revenue. It helps contextualize raw numbers into understandable metrics.

Example Calculation

Let's consider an S&P 500 movement:

This example shows how a starting index value of 100 points, increasing to 103.4 points, translates to a 3.4% gain. This simple calculation highlights the exact performance during the observed 2018-2019 shutdown, providing a clear, comparable metric.

Key Takeaways

• Always track investment changes with percentages.
• Use a calculator for precise figures, mental math for estimates.
• Understand past performance isn't a future guarantee.

Try It Yourself

Want to calculate your own investment changes or financial scenarios? Open the calculator