US stocks rallied on Monday as investors caught a glimpse of a potential end to the longest government shutdown in history. The Dow Jones Industrial Average jumped 390 points, or 0.8%, while the S&P 500 and Nasdaq rose 1.6% and 2.4%, respectively.
The boost came after eight Democratic senators broke with their party to end debate on a deal that would keep the government funded through January 30, 2026. The Senate could vote on the final passage of the deal as early as Monday. However, since the House of Representatives will not be back in session until Wednesday, the shutdown is likely to last a few more days.
Investor optimism soared on the hope of an agreement to end the shutdown, which has now lasted just over 40 days—the longest in U.S. history. Tech stocks, especially AI firms, led Monday’s rally. Shares of Jensen Huang’s Nvidia jumped 6.2%, while Broadcom rose 3%. Palantir’s shares soared 9% after suffering earlier losses due to concerns that AI potential had been vastly overestimated.
Major firms like Microsoft, Amazon, Meta, and Alphabet are expected to spend hundreds of billions of dollars on AI-related capital expenditures this year. This massive investment has caused some investors to worry that the AI race resembles the “dot-com bubble” of the 1990s. Despite these concerns, news of a potential end to the shutdown encouraged investors to take on riskier investments.
Microsoft shares rose 2% on Monday, positioning the company to break an eight-day losing streak—their longest streak of daily declines since 2011.
Over the past week, the tech-heavy Nasdaq suffered its worst week since President Trump’s “Liberation Day” tariffs sparked a massive sell-off in April. The S&P 500 and the 30-stock Dow each lost more than 1% during that period.
The deal to end the government shutdown includes future protections for government workers but does not extend Obamacare tax credits, which remained the main sticking point in negotiations between Democrats and Republicans. However, the agreement calls for a vote on the subsidies in December.
Both the Senate and House will need to hold final votes on the funding bill. House Speaker Mike Johnson (R-La.) has begun urging representatives to return to Washington, D.C., to expedite the voting process.
Concerns about the prolonged government shutdown have also taken a toll on consumer confidence. According to data released by the University of Michigan on Friday, the monthly consumer sentiment figure dropped to its lowest level in over three years. The reading of 50.3 marked a 6.2% decline from the previous month and a nearly 30% drop from this time last year, approaching some of the worst-ever levels for consumer sentiment.
https://nypost.com/2025/11/10/business/us-stocks-rally-with-end-to-government-shutdown-in-sight/
