- US stock indexes closed higher on Monday, with the S&P 500 up +1.54%, Dow Jones up +0.81%, and Nasdaq 100 up +2.20%. E-mini S&P and Nasdaq futures also rose. Positive sentiment was boosted by Senate Democrats breaking party lines to advance a bill to reopen the government.
- White House support for ending the government shutdown led to a market rally. Comments from Fed Presidents Daly and Musalem were supportive, with expectations of a rebound in the US economy. The shutdown, now the longest in history, is impacting market sentiment and economic growth.
- The US Supreme Court is skeptical of President Trump’s reciprocal tariffs’ legality. Q3 earnings season shows 82% of S&P 500 companies beating forecasts. Overseas markets rose, while T-notes fell due to stock rally and potential end to the shutdown.
- Semiconductor and AI stocks rallied, with Palantir, Micron, and Western Digital leading gains. The Magnificent Seven tech stocks also rose, along with gold-producing stocks. TreeHouse Foods surged on acquisition news, while health insurance stocks declined.
- Celestica, Eli Lilly, and Tyson Foods saw gains, while Metsera and Monday.com faced losses. Applied Optoelectronics, Ball Corp, FedEx, and UPS also closed lower. Earnings reports from Amdocs Ltd and Anglogold Ashanti Plc were released.
Read more at Nasdaq: Stocks Finish Sharply Higher on Plans to Reopen the US Government