The government shutdown that has lasted an unusually long time is coming to a close, leading to a significant market rally.
Senate Progress Influences Market Rally
The Senate made progress late Sunday by advancing a measure to resolve the government shutdown. This step allows the measure to be sent back to the Republican-led House for further action.
Meanwhile, the three major stock indices all saw gains in morning trading, with technology stocks leading the growth. Companies such as Micron and TSMC, along with the “Magnificent Seven” group, including Alphabet and Tesla, also experienced increased stock prices.
Reopening Effects on Economic Data
Once the government reopens, analysts expect the release of various delayed economic reports, including the September employment report. This data will aid the Federal Reserve in deciding on interest rates in December.
Additionally, government employees who have missed paychecks may finally receive their wages, which could boost consumer spending as the holiday season approaches. President Trump has indicated he may reduce pay for air-traffic controllers who missed work during the shutdown.
Global Market Reactions
Bitcoin prices saw an increase, positively impacting crypto-related stocks like Robinhood and Coinbase. Simultaneously, Chinese stocks rose after reports indicated easing deflationary pressures in October.
Other global markets also performed well, with Japan’s Nikkei 225 and Europe’s Stoxx 600 both up more than 1%.
What does the shutdown mean for government workers?
Many government workers may finally receive overdue paychecks.
How does the market react to the shutdown news?
Markets rally as Congress makes progress to end the shutdown.
What economic data is expected post-shutdown?
The September employment report might be released quickly.
