Tech led gains in US stock futures on Monday, after the Senate took a big step toward ending the record-breaking government shutdown that has clouded the picture of the economy.
S&P 500 futures (ES=F) rose nearly 1%, while those on the tech-heavy Nasdaq 100 (NQ=F) climbed 1.5%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech names, added 0.4%.
Markets have turned upbeat amid optimism that the 39-day US shutdown could soon come to an end, after a weekend of deal-making in Washington. A new bill was released late Sunday and quickly advanced in a key Senate procedural vote, after enough Democrats joined with Republicans to avoid a filibuster.
The prolonged shutdown has taken a toll on consumer confidence and the overall economy, with consumer sentiment dropping to just above record lows. Meanwhile, it has disrupted federal services and delayed key economic data releases, such as the Consumer Price Index (CPI) and Producer Price Index (PPI) inflation readings and the monthly jobs report.
Next up for the bill is a vote for final passage in the chamber, though its fate in the House remains uncertain. While it would reopen the government through Jan. 30, among other funding provisions, the deal lacks any immediate vote on the extension of healthcare subsidies earlier demanded by Democrats.
The moves higher come after a bumpy week on Wall Street, which saw the worst tech sell-off since April with the likes of Nvidia (NVDA) struggled to make headway amid persistent worries about an AI bubble and overbaked valuations.
This week, investors will turn their attention to corporate earnings, with tech releases from CoreWeave (CRWV), Oklo (OKLO), and Rocket Lab (RKLB). The entertainment sector will get a health check with results from The Walt Disney Company (DIS) and Paramount Skydance (PSKY).
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