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Markets Rally After Senate Advances Bill to Reopen 40-Day U.S. Government Shutdown

A 60–40 procedural vote in the Senate opened a pathway to fund the government into late January.

Overview

  • Wall Street logged strong gains, with the Nasdaq up 2.27% for its best day since May, the S&P 500 up 1.5% and the Dow up 0.8%.
  • Technology and chip shares led the rebound as Nvidia rose more than 3% and the semiconductor index gained about 2%, with Micron higher in premarket trading.
  • The procedural vote set up a stopgap that would finance federal operations into late January, though final Senate action and a House vote are still pending.
  • Reports indicate the plan would restore pay for more than 650,000 federal employees and fund departments such as Agriculture and Veterans Affairs through January 30.
  • Overseas markets climbed as well, with Spain’s Ibex 35 opening about 1% higher to reclaim 16,000 and Mexico’s FTSE-BIVA reaching a record on easing October inflation of 3.57% and a 25 bp Banxico rate cut.