U.S. stocks were set to gain at the market open on Monday with an end to the government shutdown seemingly in sight.
Dow Jones Industrial Average futures were up 188 points, or 0.4%. S&P 500 futures were rising 0.9% and Nasdaq 100 futures were gaining 1.5%. The tech-heavy Nasdaq looked set to lead gains after sinking 3% last week, logging its worst week since the selloff in early April sparked by President Donald Trump’s tariffs announcement.
The Senate passed a procedural vote Sunday night, 60-40, on a deal to end the shutdown, gaining the support of eight moderate Democrats. However the process could last several days, with the agreement needing a final cloture vote in the Senate and to win House approval.
“The compromise is far from meeting the full Democratic demands of a delay in the end of Obamacare healthcare subsidies, and Democrats in the House may still reject the compromise. But the next 48 hours in Congress should tell us whether this initiative has legs,” wrote ING analyst Chris Turner in a research note.
Perhaps most importantly, an end to the shutdown could lead to a resumption of the flow of economic data. Releases due this week include inflation data for October and jobless claims on Thursday, followed by October retail sales and producer prices on Friday. The market is eager for further data to help gauge the trajectory of the Federal Reserve’s interest-rate policy.
The yield on the benchmark 10-year Treasury note stood at 4.151% early Monday, ticking up from the previous week.
