U.S. Stocks Edge Lower as Markets Consolidate Ahead of Government Reopening
U.S. stocks traded mostly lower on Tuesday, pausing after a strong rebound in technology shares and growing optimism over an end to the historic government shutdown.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average rose 80 points (0.2%), while the S&P 500 slipped 10 points (0.2%) and the NASDAQ Composite fell 102 points (0.4%).
Government Set to Reopen
The U.S. Senate voted to advance a spending package that would end the longest federal government shutdown in American history, with support from eight Democratic senators. The bill now moves to the House of Representatives, where approval is expected before being signed into law by President Donald Trump.
Analysts believe the reopening could restore confidence to the markets and pave the way for a year-end rally. “The shutdown resolution, even though the government won’t reopen for several more days, is clearly a positive signal,” analysts at Vital Knowledge said in a client note.
Optimism about the shutdown’s end fueled Wall Street gains in the prior session, led by strong advances in artificial intelligence stocks such as Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR).
UBS Forecasts S&P 500 Rally in 2026
With most third-quarter earnings now reported, UBS projects continued upside for U.S. equities. The bank expects the S&P 500 to climb to 7,500 next year from its current 5,830, driven by 14% earnings growth, nearly half of which will come from technology companies.
UBS analysts said the global economy is poised to accelerate in 2026, supported by improving business confidence and fiscal stimulus. However, in the short term, the U.S. and other major economies will need to navigate slower growth and tariff-related inflation pressures.
The bank forecasts around 10% returns for U.S. equities next year, with gains led by earnings growth rather than valuation expansion.
Corporate Highlights
CoreWeave (NASDAQ: CRWV) shares dipped after the AI cloud firm, backed by Nvidia, announced a delay at a third-party data center partner. The news overshadowed otherwise solid quarterly results, as the company continues to expand partnerships with major tech players including OpenAI and Meta Platforms (NASDAQ: META).
Paramount Skydance (NASDAQ: PSKY) rose after announcing plans to cut an additional $1 billion in costs, on top of the $2 billion in savings outlined after its merger in August.
Rocket Lab (NASDAQ: RKLB) gained after reporting a smaller-than-expected quarterly loss, while TheRealReal (NASDAQ: REAL) surged 15% following strong revenue results and upgraded full-year guidance.
Oil Prices Rise on Reopening Optimism
Crude oil prices edged higher as traders anticipated improved demand following the likely government reopening. Brent futures rose 1.1% to $64.78 a barrel, and West Texas Intermediate (WTI) climbed 1.2% to $60.85.
Despite the rally, markets remain cautious about a potential supply glut in 2026. OPEC+ recently agreed to raise output by 137,000 barrels per day through November, before pausing increases in the first quarter of next year.
