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- Stocks rise after Senate moves to end government shutdown (abcnews.go.com)
Stocks Soar as Senate Nears Deal to End Prolonged Government Shutdown
NEW YORK, NY – After weeks of economic uncertainty and a dragging government shutdown, Wall Street breathed a collective sigh of relief on Monday as stocks surged following a pivotal Senate vote to advance a potential deal. The move signals a possible end to the 41-day federal impasse, which has cast a long shadow over the nation’s financial landscape.
Midday trading saw the Dow Jones Industrial Average climb an impressive 260 points, or 0.5%, while the S&P 500 jumped 1.3%. The tech-heavy Nasdaq led the charge with a robust 2% increase. This significant rebound comes after major indices registered a rare weekly loss, breaking a four-week streak of gains.
On Sunday, in a rare weekend session, lawmakers managed to clear a crucial procedural hurdle, advancing a short-term funding bill with a razor-thin 60-40 vote. This development brings the nation closer to reopening the government and restoring stability to markets.
The prolonged shutdown has undoubtedly taken its toll on the economy. A recent report from the University of Michigan revealed a decline in shopper attitudes in November, pushing consumer sentiment to its lowest point since 2022.
This followed data from the Federal Reserve Bank of New York indicating that American household debt levels have reached a record high. With consumer spending accounting for approximately two-thirds of U.S. economic activity, these developments hold significant implications for the wider economy.
Despite these recent strains, markets have demonstrated remarkable resilience throughout a turbulent year marked by fluctuating tariffs, persistent inflation, and a slowdown in hiring. Tech giants, in particular, have defied these headwinds, fueled in part by a booming investment in artificial intelligence. The S&P 500 has soared 14% in 2025, the Dow has climbed 10%, and the Nasdaq has surged an impressive 19%.
The Senate reconvened on Monday to continue working towards a resolution. While some procedural measures remain before a deal can be sent to the Republican-controlled House for potential approval, the prospect of an end to the shutdown is generating optimism.
A resolution would bring immediate relief to thousands of federal employees, restoring jobs and providing much-needed backpay, which is expected to inject a significant boost into the U.S. economy. Furthermore, the federal government would resume the collection and release of critical economic data, offering investors crucial insights into monthly inflation and hiring reports.
Looking ahead, the Federal Reserve is scheduled to issue a decision on interest rates early next month. The central bank has already slashed interest rates by a quarter of a percentage point at each of its last two meetings.
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