The stock market has surged in premarket trading after Democrats and Republicans agreed a deal to end the record 40-day government shutdown.
Nasdaq futures jumped 1.45 percent – rebounding sharply from last week’s AI-driven selloff – while S&P 500 futures climbed 0.9 percent and Dow futures added 176 points ahead of the opening bell on Monday.
Chipmakers led the charge, with Micron and TSMC posting strong gains alongside Magnificent Seven leaders Alphabet and Tesla.
Treasury yields spiked higher as risk appetite returned, lifting gold futures and sending the dollar firmer against the yen while steadying against the euro and pound. Oil and Bitcoin prices edged up.
A group of Democrats in the Senate sided with Republicans in a procedural vote on the deal Sunday evening – clearing the way for a formal debate – after reaching a bipartisan agreement to fund operations through January.
The Senate will have up to 30 hours to debate before the measure is expected to be passed. Once it clears, it needs approval from the Republican-controlled House of Representatives before going to President Donald Trump for his signature.
Lawmakers said the deal reverses thousands of federal worker firings, restores food-stamp funding, and guarantees a vote on extending healthcare subsidies – addressing the core disputes that fueled the impasse.
Once signed, agencies will rush out backlog data, with the September jobs report likely first in line – a critical input for the Federal Reserve’s December rate decision.
Traders work on the floor of the New York Stock Exchange on November 7
Furloughed workers will also receive back pay, delivering an immediate jolt to consumer spending ahead of Thanksgiving.
Airlines cheered the timing, as transportation authorities lift flight caps that had snarled holiday travel plans.
Global markets followed Wall Street higher. Hong Kong closed up 1.7 percent, Frankfurt gained the same nearing midday, and a broader risk-on tone painted boards green across Asia and Europe.
‘The more risk-on mood means it’s pretty much a sea of green on the boards,’ Neil Wilson, UK Investor Strategist at Saxo, said of the gains across stock markets.
‘In the US, stock futures are pointing to solid gains,’ he added.
Separately, Beijing announced a one-year suspension of special port fees on US vessels, effective simultaneously with Washington’s pause on levies against Chinese ships – further easing trade frictions and bolstering sentiment.
