US equities climbed on Monday after Senate lawmakers advanced a key procedural measure that moves the government closer to ending its historic shutdown, restoring some confidence across risk assets.
The S&P 500 rose 1%, the Nasdaq Composite gained 1.6%, and the Dow Jones Industrial Average added 250 points, or 0.5%, reflecting broad momentum across sectors.
Nvidia, Broadcom and other leaders of the artificial intelligence trade—stocks that have steered both the recent rally and last week’s sharp pullback—led early gains as sentiment improved.
Investors had grown increasingly uneasy about inflated valuations amid the absence of economic data and mounting uncertainty from the shutdown.
Senate deal clears first hurdle
Market optimism strengthened after a procedural measure allowing further votes on a funding compromise passed with at least 60 votes, including support from eight Democratic senators who broke with party leadership.
The emerging agreement would reopen the federal government through January, reverse some of the layoffs triggered during the shutdown, and add future protections for federal workers.
It excludes an extension of Affordable Care Act tax credits—an issue that had been a sticking point for Democrats—but would require a separate vote on the subsidies in December.
A final Senate vote is still needed and the measure must pass the Republican-controlled House before the government can reopen.
Shutdown concerns weigh on sentiment
The shutdown, now in its sixth week, has taken a visible toll on consumer confidence.
According to the University of Michigan, sentiment has dropped to its lowest level in more than three years, just above its worst reading on record.
The federal closure has also blocked the release of major economic data, including the Consumer Price Index and Producer Price Index, leaving investors without high-frequency signals on inflation and growth.
These concerns contributed to last week’s declines on Wall Street.
The Nasdaq Composite had its worst week since the tariff-driven selloff in April, losing about 3%, while the S&P 500 and Dow each fell more than 1%.
Airlines rise as travel fears ease
Airline stocks advanced on hopes that a government reopening would ease worsening air-travel disruptions ahead of Thanksgiving.
In early trading, United Airlines and Delta Air Lines each rose around 2%. American Airlines, JetBlue Airways, and Alaska Air climbed more than 1%.
Travel disruptions mounted over the weekend, and Transportation Secretary Sean Duffy warned that conditions are “only going to get worse” if the shutdown continues.
Thousands of flights have already been delayed or cancelled amid a shortage of air traffic controllers caused by missed paychecks.
Semiconductor stocks climb
In a separate development, China suspended several export restrictions on rare earth minerals used in semiconductors and military hardware, easing a pressure point in the US-China trade relationship.
Beijing’s Ministry of Commerce said it would lift the controls for one year.
The news lifted chip stocks, with the VanEck Semiconductor ETF (SMH) rising more than 2%, led by a 3.3% gain in Nvidia.
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