By Jack Pitcher
Investors are feeling bullish again.
Reports that Congress was closing in on a deal to reopen the government sparked a rally in tech stocks and other riskier trades, and gave investors hope that federal officials would soon roll out key economic-data reports that had been suspended by the shutdown.
The Senate cleared a key hurdle late Sunday after Democrats provided just enough votes to advance a measure designed to end the impasse. The Senate's next big step will be to send the measure back to the Republican-led House.
Concerns over tech earnings, valuations and the economy weighed heavily on the market last week. Some of the hardest-hit sectors and stocks were among the best performers Monday, showcasing the resilience of the three-year-old AI-fueled bull market.
"It's a tech and AI recovery day," said Louis Navellier, founder of investment firm Navellier & Associates. "The apparent overvaluation concerns of AI names have been reversed in a big way."
The Nasdaq Composite Index rebounded from its worst week since April to close Monday up 2.3%. The S&P 500 was 1.5% higher, while the Dow Jones Industrial Average added 0.8%, or 381 points.
The information-technology and communications-services sectors led the S&P 500, just like they have all year. Market darling Palantir was the day's top performer, adding 8.8%, while Nvidia and Advanced Micro Devices joined it in posting outsize gains, rising 5.8% and 4.5%, respectively. Bitcoin also rebounded after touching a multimonth low on Friday.
A low reading from the University of Michigan's consumer sentiment index and data showing rising layoff announcements brought economic concerns to the forefront last week. Before the shutdown, government data had often comforted investors with signs of a resilient, if slowing, economy. On Friday, investors went without a jobs report for a second-straight month.
That looks set to end soon. A slew of delayed economic data will be released when the government reopens. Analysts say the September employment report could be among the first to be published, helping the Federal Reserve weigh its December interest-rate decision.
Plus, government workers who have missed paychecks may finally get paid, potentially boosting consumer spending. While President Trump on Monday threatened to dock the pay of air-traffic controllers who have missed work during the shutdown, an end to the shutdown before the busy Thanksgiving travel period will be welcomed by airlines, as transportation authorities are currently curbing flight traffic.
"Investors stand to benefit from an imminent reopening," said José Torres, senior economist at Interactive Brokers.
Consumer staples and utilities, typically viewed as defensive, recession-resistant sectors, declined.
Elsewhere Monday, precious metals resumed their record-setting year. Silver prices posted one of their best days of the year, rising 4.5%, while gold was 2.8% higher.
Write to Jack Pitcher at jack.pitcher@wsj.com
(END) Dow Jones Newswires
November 10, 2025 16:25 ET (21:25 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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