
The U.S. Senate passed a bill Monday night to fund the government through January and end the shutdown. The bill passed with support from most Republicans and several Democrats, and now heads to the House of Representatives for a vote. President Donald Trump has endorsed the deal, which was negotiated between Republicans and moderate Senate Democrats after six weeks of gridlock.
U.S. stock futures were mostly flat this morning following a strong rally on Monday. Dow futures rose 0.03%, while S&P 500 and Nasdaq 100 futures were both up less than 0.1%. Investors bought back into AI-related stocks after last week’s sell-off.
The rally was driven by optimism that the government shutdown may soon end, with the Senate expected to vote on a deal to fund the government through January and reverse recent federal layoffs. The agreement excludes an extension of Affordable Care Act subsidies but promises a vote on them in December.
Tech giants powered the rebound, with Nvidia up 5.9%, Alphabet up 4%, and Microsoft gaining nearly 2% to break an eight-day losing streak. An end to the shutdown would remove a key economic risk, restore the release of federal economic data, and help the Federal Reserve make more informed decisions ahead of its December meeting.
Gold edged lower on Tuesday after nearing the $4,150 resistance zone, as optimism over a potential U.S. government reopening reduced safe-haven demand. Still, lingering concerns about the economic impact of the record-long shutdown and expectations of a possible Fed rate cut in December continue to support the precious metal.
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