The Nasdaq Composite locked in its best day since May after a group of Senate Democrats joined Republicans to advance a bill to end the government shutdown.
The Nasdaq rose 2.3% to mark its largest daily gain since May 27, according to Dow Jones Market Data. The Dow Jones Industrial Average rose 381 points, or 0.8%. The S&P 500 was up 1.5%.
A group of eight Senate Democrats joined Republicans to vote 60-40 to advance a stopgap funding measure. The Senate’s next vote, if successful, sends the measure to the House for consideration. They also have to approve it. House lawmakers will return from a recess on Wednesday.
With an end to the shutdown in sight, Wall Street initially piled into hard-hit Big Tech stocks and artificial intelligence plays. Then the rally broadened out as the afternoon rolled on.
“It may be strange to think that the market rallied in early October, when the shutdown first started, and is rallying now, when the government is poised to reopen,” writes Bespoke Investment Group co-founder Paul Hickey. “But investors are breathing a sigh of relief.”
The longer the shutdown drags on, the more it has the potential to spur larger economic disruptions, Hickey argued. It’s still unclear when the flow of government data will resume; the Bureau of Labor Statistics was previously scheduled to release the consumer and producer price indexes this week.
Bond prices were on the decline with the market back in risk-on mode. The yield on the 2-year Treasury note rose to 3.59%. The 10-year yield was up to nearly 4.11%. The bond market—but not the stock market—will be closed on Tuesday for Veterans Day.