United States markets rallied on Monday (Tuesday AEDT) as investors grew optimistic that Senate lawmakers were closing in on a deal to end the nation’s longest-ever government shutdown.
President Donald Trump indicated his approval of the proposed Senate agreement, telling reporters in the Oval Office that he was supportive “based on everything I’m hearing” about the deal, which cleared a key procedural hurdle in the Senate on Sunday night (Monday AEDT).
The Dow Jones Industrial Average climbed 381.5 points, or 0.8%, to close at 47,368.6. The S&P 500 advanced 103.6 points, or 1.5%, to 6,832.4, while the Nasdaq Composite surged 522.6 points, or 2.3%, to 23,527.2.
Technology stocks led the rebound, with Nvidia jumping 5.8%. AI analytics firm Palantir gained 8.8%, Tesla rose 3.7%, while Microsoft advanced 1.9%, breaking an eight-day losing streak.
However, airline stocks struggled as government-mandated flight cuts and staff shortages in air traffic control caused widespread travel disruption.
United Airlines slipped 1.3% and American Airlines lost 2.5%.
Health insurers also weighed on the market after the Senate’s deal to end the 40-day shutdown excluded an extension of Affordable Care Act subsidies.
Centene tumbled 8.8%, Humana dropped 5.4%, and Elevance Health declined 4.4%.
Meanwhile, biotech firm Metsera slumped 14.8% after Pfizer secured a US$10 billion deal to acquire the company, ending a heated bidding war.
On the bond markets, yields on both the 10-year and 2-year Treasuries were up 0.7% and 1% to 4.12% and 3.595%, respectively.
