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Markets Rally as Senate Advances Bill to End Record U.S. Shutdown

House approval remains the next hurdle before agencies reopen, with official data releases still on hold.

Overview

  • The Senate advanced a House-passed stopgap that would fund the government through January 30 and fold in three full-year appropriations bills.
  • U.S. stock futures climbed in early trade, with the S&P 500 up roughly 0.7–1.0% and the Nasdaq 100 up about 1.3%, as European and Asian equities also gained and Treasury yields edged higher.
  • The 40-day shutdown has postponed CPI, PPI, jobs and retail sales reports, leaving the Federal Reserve with reduced visibility and complicating prospects for a December rate cut.
  • Consumer sentiment fell to the weakest level in nearly three and a half years, and White House economist Kevin Hassett warned fourth-quarter GDP could turn negative if the closure persists.
  • After last week’s tech slump on valuation worries, AI-linked names led part of Monday’s rebound, with Nvidia and other chipmakers higher in premarket trading.