With Congress gridlocked over spending bills, the US faces a looming government shutdown that could begin as early as this week.
While most sectors brace for disruption, a handful of companies stand to benefit from the chaos.
Defense contractors, gold miners, and consumer staples firms often outperform during shutdowns, as investors seek safety and essential services remain in demand.
Market volatility tends to rise, and risk-off sentiment can drive capital toward companies with resilient business models or countercyclical demand.
Here are three stocks that could gain ground if Washington stalls.
Northrop Grumman Corp (NYSE: NOC)
Northrop Grumman, one of the largest US defense contractors, is well-positioned to weather a government shutdown.
While some federal operations may pause, defense spending is typically shielded from immediate cuts due to its national security importance.
The company’s long-term contracts with the Department of Defense provide revenue stability, and its focus on aerospace, missile systems, and cybersecurity ensures continued relevance.
In past shutdowns, defense stocks have shown relative strength as investors rotate into sectors with guaranteed funding.
Moreover, geopolitical tensions and elevated global defense budgets add a layer of insulation.
If the shutdown drags on, Northrop shares could benefit from its entrenched government relationships and predictable cash flows.
Newmont Corporation (NYSE: NEM)
Gold tends to shine during periods of political uncertainty, and Newmont – one of the world’s largest gold producers – stands to benefit from a government shutdown.
As investors grow wary of fiscal dysfunction, demand for safe-haven assets like gold typically rises.
This drives up bullion prices and boosts profitability for miners like Newmont.
The company has a diversified portfolio of mines across North America, South America, and Australia, giving it geographic flexibility and production scale.
In previous shutdowns, gold prices have rallied on fears of delayed economic data, credit downgrades, and weakened dollar sentiment.
If history repeats, Newmont could see both investor inflows and margin expansion.
Note that Wall Street currently has a consensus “overweight” rating on NEM shares with price targets going as high as $107.
Walmart Inc (NYSE: WMT)
Walmart’s massive footprint in essential goods and discount retail makes it a defensive play during government shutdowns.
As federal workers face furloughs and consumer confidence dips, households often shift spending toward value-oriented retailers.
Walmart benefits from this behavior, offering groceries, household staples, and low-cost alternatives across its nationwide network.
The company’s scale also allows it to absorb supply chain shocks and maintain inventory during periods of disruption.
In past shutdowns, Walmart has seen steady foot traffic and resilient sales, especially in food and pharmacy categories.
If the shutdown impacts SNAP benefits or federal paychecks, WMT’s affordability and necessity-driven model could attract even more budget-conscious consumers.
A near 1.0% dividend yield makes Walmart stock all the more attractive to own amid political uncertainty.
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