Wall Street extended gains Monday as investors cheered signs that the historic U.S. government shutdown could finally be nearing an end. The S&P 500 (SPX) climbed 0.89% to 6,788.89, the Nasdaq Composite (COMP) jumped 1.56% to 23,362.44, and the edged up 0.16% to 47,063.57. The risk-on rebound came after a key bipartisan vote in the Senate advanced legislation to reopen the government, fueling optimism for renewed economic momentum into year-end.
The procedural 60–40 vote—supported by eight Democratic senators—sparked confidence that a funding resolution could pass the House this week, ending a shutdown that’s halted data releases and delayed federal payrolls. Traders piled into high-growth and cyclical sectors, sending tech and semiconductor shares sharply higher.
Gold and bitcoin also rose, while the VIX volatility index slipped 3.3% to 18.45, marking the lowest level in nearly a month. The rally reflected a rare mix of improving sentiment and persistent hedging demand as investors position for a data-heavy December.
Tech Titans and AI Leaders Dominate Monday’s Rally
Mega-cap tech stocks drove Wall Street’s strength as the “Magnificent Seven” rebounded from last week’s steep losses. surged 3.78% to $195.27, while climbed 3.99% to $446.64, extending its rebound as traders rotated back into growth names. rose 2.57% to $285.99, advanced 1.01% to $246.88, and added 1.75% to $632.58.
gained 0.82% to $500.88, ending its longest losing streak since 2011, while the rallied 2.06%, on pace for its best session since May. Analysts noted that after an AI-driven selloff, investors returned to tech as shutdown resolution talks restored confidence.
The rebound in AI-linked giants was broad and aggressive, signaling that institutional money was rotating back into high-margin growth sectors that continue to anchor S&P 500 earnings expansion through 2026.
Semiconductors Outperform as Supply Eases and Demand Recovers
Chip stocks posted strong gains led by , which rose 3% after reporting double-digit sales growth in October despite softening momentum. , , , and all advanced more than 2%, boosting the by over 2%.
Sentiment improved further after China suspended rare earth export restrictions for a year, easing fears over supply chain constraints. That decision fueled gains across defense and manufacturing-linked equities, which have been under pressure amid tariff uncertainty.
Analysts expect the semiconductor cycle to strengthen into 2026 as AI infrastructure spending accelerates. With sector valuations near 23x forward earnings, chips remain the backbone of market leadership, balancing growth momentum and fiscal resilience.
Airline Stocks Climb as Shutdown Resolution Nears
Airline shares extended early gains as the Senate vote hinted at a near-term end to federal disruptions. , , and each rose around 2% in premarket trading before moderating through the day. The remained flat at $25.23, showing cautious optimism as investors awaited official confirmation of the funding deal.
Transportation Secretary Sean Duffy warned the travel situation could worsen if the shutdown continued, noting over 2,600 flights were canceled during the weekend—the fourth-highest daily total since January 2024. With the government poised to reopen before Thanksgiving, airline operators are eyeing a sharp rebound in bookings and traffic.
Healthcare Underperforms Despite Pfizer’s $10B Metsera Takeover
Healthcare lagged broader markets after confirmed a $10 billion acquisition of obesity-drug maker . The offer, worth $86.25 per share in cash, includes $65.50 upfront and up to $20.65 in contingent rights. While Pfizer expanded its weight-loss portfolio, shares slipped 1.3% amid integration concerns, and Metsera tumbled 15%.
, which lost the bidding war, dipped slightly, while remained flat as analysts reaffirmed its leadership in next-generation obesity therapies. gained only 0.12% to $146.32, signaling ongoing investor preference for growth sectors over defensives.
Despite 83 healthcare M&A deals above $100 million this year, the sector continues to trade at a 15% discount to the S&P 500, underscoring investor skepticism toward near-term profitability growth.
Gold Breaks $4,100 as Inflation Hedge Demand Reignites
Gold futures (GC00) soared 2.25% to $4,100.20, breaking above the key psychological level as traders balanced optimism in equities with longer-term inflation concerns. The move came as Treasury yields eased and global investors sought refuge ahead of the upcoming wave of delayed economic data.
The 10-Year Treasury yield (BX:TMUBMUSD10Y) stayed near 4.116%, while the rose modestly 0.09% to 96.93. Analysts noted that gold’s rise, alongside equity strength, reflects a “barbell” strategy: positioning for continued market expansion while hedging policy and fiscal volatility.
Bitcoin Holds Above $105,000 as Crypto Stocks Stabilize
Digital assets gained traction as Bitcoin (BTCUSD) traded at $105,218, up 0.58%, supporting rebounds in , , and .
After a volatile autumn, crypto-related equities saw renewed inflows from speculative traders betting on macro relief and potential ETF-driven demand. MicroStrategy’s market capitalization, now around $70 billion, remains well below its $128 billion summer peak, but recent stabilization signals renewed institutional confidence.
Oil Slips Below $60 as Commodities Diverge
Energy prices softened despite broad market optimism. slipped 0.42% to $59.50, pressured by high inventories and sluggish short-term demand forecasts. The S&P GSCI Commodity Index Spot (SPGSCI) fell 0.30%, while gold offset declines across energy names.
Financials fared slightly better, with the up 0.54% to 151.55 as investors priced in resumed Treasury flows and reduced liquidity stress once government operations restart. Analysts highlighted that mid-tier lenders could benefit from restored federal contract funding and payroll deposits in the coming weeks.
Overseas equities echoed Wall Street’s risk rally. Japan’s Nikkei 225 advanced 1.2%, while Europe’s Stoxx 600 rose 1.1%, supported by optimism over China’s easing deflation trends and suspension of export restrictions on critical minerals.
The USD/JPY pair strengthened 0.39% to 154.02, reflecting continued yen weakness, while AUD/USD gained 0.43% to 0.6522. The U.S. Dollar Index (DXY) traded near fair value, with UBS analysts citing long-term support from productivity growth tied to AI investments.
Corporate Highlights: MP Materials, Palantir, and Instacart Advance
jumped 3% after Deutsche Bank upgraded the stock to “Buy,” setting a $71 price target that implies 21% upside. Shares have already soared 276% year-to-date, benefiting from U.S. defense supply chain reallocation and strong rare earth demand.
surged 8% after reporting 10% revenue growth to $852 million, with gross transaction value rising to $9.17 billion, above estimates. New CEO Chris Rogers emphasized AI expansion and digital ad growth in his first shareholder letter.
rebounded 3% following last week’s 11% decline, supported by continued defense sector demand and anticipation of new contract awards once federal spending resumes.
Bond Auctions and Economic Data Await Market Clarity
Fixed-income traders prepared for $125 billion in Treasury issuance this week—$58B in 3-year notes Monday, $42B in 10-year notes Wednesday, and $25B in 30-year bonds Thursday. The bond market will pause Tuesday for Veterans Day, tightening short-term liquidity conditions.
Once the government reopens, delayed reports such as the September jobs data are expected to be released quickly, providing essential input for the Fed’s December meeting. Economists project a modest labor rebound that could shape interest-rate guidance heading into early 2026.
Market strategists remain upbeat. UBS forecasts the S&P 500 reaching 7,500 by the end of 2026 as corporate earnings broaden beyond Big Tech. Orion CIO Tim Holland highlighted 13% EPS growth expectations and favorable seasonality supporting a fourth-quarter rally.
Meanwhile, Goldman Sachs upgraded Indian equities to Overweight, citing rate cuts, liquidity easing, and moderating tariff risks. Indian markets rose 3% in USD terms this year but still lag broader emerging markets, leaving room for institutional inflows.
Verdict: BUY Bias Into Year-End
We maintain a strong BUY stance on U.S. equities heading into December. The Nasdaq (COMP) continues to lead global markets, supported by AI and semiconductor momentum, while the S&P 500 (SPX) approaches record territory on strengthening breadth.
Gold holds a HOLD bias above $4,000, serving as an inflation hedge, while crude oil remains Neutral near $59 as supply stabilizes. Bitcoin sustains a BUY tone above $105,000, signaling steady institutional interest.
If Congress finalizes the funding bill this week, Wall Street could see a sustained breakout through Thanksgiving, led by strong earnings, reduced volatility, and renewed global inflows—setting up a powerful year-end run across all major indices.
That’s TradingNEWS.com