U.S. Stocks Rally as Senate Moves Toward Ending Government Shutdown
U.S. stocks surged on Monday after the Senate advanced legislation aimed at ending the longest government shutdown in American history, boosting investor confidence and lifting Wall Street indices across the board.
As of 09:35 ET (14:35 GMT), the Dow Jones Industrial Average was up 235 points (0.5%), the S&P 500 gained 70 points (1%), and the NASDAQ Composite soared 375 points (1.6%) — with broad strength seen across major sectors.
Senate Progress Sparks Market Optimism
On Sunday, the Senate voted 60–40 to move forward with a spending bill that would fund the federal government through January 30, 2026. The vote came after eight Democratic senators joined Republicans in supporting a compromise, which included a future vote on healthcare subsidies and reinstatement of federal workers who lost their jobs during the shutdown.
The bill must still pass a final Senate vote, then move to the House of Representatives, before being signed into law by President Donald Trump.
The news of progress in Washington helped ease concerns over the 40-day government shutdown, which has disrupted air travel, delayed public services, and weighed on U.S. economic growth.
Airlines canceled more than 1,500 flights on Monday, marking the fourth straight day of widespread disruptions caused by staff shortages and federal flight reductions.
Consumer sentiment also hit its lowest level in three and a half years, according to the University of Michigan, while White House economic adviser Kevin Hassett warned that a prolonged shutdown could push the U.S. economy into contraction in the fourth quarter.
Tech Stocks Rebound After Heavy Selloff
Monday’s gains also marked a recovery for the tech sector, which had endured steep losses the prior week. The NASDAQ Composite recorded its worst week since April, dropping 3%, while the S&P 500 and Dow Jones fell 1.6% and 1.2%, respectively.
Investors had pulled back from high-valuation tech names amid growing concerns that AI-driven enthusiasm had gone too far. However, sentiment improved after Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) reported strong October revenue, signaling continued global demand for AI and data center chips.
Meanwhile, Pfizer (NYSE:PFE) announced a $10 billion acquisition of Metsera (NASDAQ:MTSR), an obesity drug developer, following a fierce bidding war with Novo Nordisk (NYSE:NVO). Tyson Foods (NYSE:TSN) also beat expectations, forecasting higher annual revenue driven by strong demand for chicken products despite weakness in its beef segment.
This week’s earnings calendar will be quieter, with only Cisco Systems (NASDAQ:CSCO) and Walt Disney (NYSE:DIS) among the Dow 30 set to report results.
Fed Rate Cut Speculation Builds
Market focus is now turning to the Federal Reserve’s December meeting, where traders are pricing in a 60% chance of a 25 basis point rate cut, according to CME FedWatch.
However, limited economic data due to the shutdown has clouded visibility, and Thursday’s inflation release may be postponed, extending the uncertainty.
Gold and Oil Prices Advance
Commodities also rallied Monday, supported by a weaker dollar and optimism surrounding a potential government reopening.
Spot gold jumped 2.2% to $4,087.59/oz, while December gold futures rose 2.1% to $4,094.85/oz.
Brent crude gained 0.6% to $63.99 a barrel, and WTI crude rose 0.6% to $60.11 a barrel.
Meanwhile, the COP30 climate summit opened in Brazil, drawing global attention as world leaders debate new policies amid heightened geopolitical tension and environmental pressure.
