In a nail-biting development amid fears of a government shutdown, the House has passed a bipartisan bill, narrowly averting the blackout as the midnight deadline looms.

The latest move paves the way for a Senate vote to fund the U.S. federal government for an additional 45 days. 

House Speaker Kevin McCarthy unveiled the proposal amid internal clashes among House Republicans. 

Now awaiting the Senate's approval, the bill is includes the natural disaster aid the White House had sought but lacks the $6 billion Ukraine aid.

The clock is ticking, and the Senate has until the witching hour to seal the deal and thwart a funding blackout.

Economic Resilience Amid Political Drama

A glance at history underscores the economy's resilience; since 1976, amidst 20 government shutdowns, the real GDP has maintained an average growth of 2.2%. 

Workers and Economy in the Crosshairs

Goldman Sachs economists warn of a 0.2 percentage points reduction in growth per week in the event of a shutdown, attributed mainly to the instant withdrawal of spending power due to unpaid federal salaries.

Defense and Healthcare: The Silver Lining?

For equity investors, opportunities may lie in the defense and healthcare sectors, historically known to rally during shutdowns. 

Defense has gained 5.2%, and healthcare 2.3%, outperforming the S&P 500's 3% return during past shutdowns, the Morgan Stanley report points out.

Spotlight on Stocks

Eli Lilly And Company (NYSE:LLY) and Novo Nordisk (NYSE:NVO) are notable mentions in healthcare, boasting significant market caps and impressive yearly growth. LLY has a dividend yield of 0.80%, while NVO has a dividend yield of 1.1%.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Shutterstock