US Stock Market Today: S&P 500 Jumps 1%, NASDAQ Rises 2% as Senate Advances Deal to End US Government Shutdown

US stocks rose on Monday as investors reacted to progress toward ending the US government shutdown of 40 days. The S&P 500 gained approximately 1% in midday trading, while the tech-heavy NASDAQ 100 advanced close to 2%. The Dow Jones Industrial Average traded near flat, as investors favored growth and technology names over traditional blue chips.

Large technology stocks led the move higher. NVIDIA, Meta, Microsoft, Alphabet, and Amazon all recorded solid gains after a sharp sell-off last week. The rally followed signs that the Senate had moved a bipartisan bill forward that would reopen the government and fund operations through late January.

Risk appetite increased across several asset classes. Bitcoin climbed modestly, while the Bloomberg Magnificent 7 Index rose about 2%. Smaller US companies also participated, with the Russell 2000 Index advancing. European and global equity benchmarks, including the Stoxx Europe 600 and MSCI World Index, also traded higher.

Shutdown Deal Boosts Sentiment but Data Gaps Remain

Progress toward a shutdown deal improved market sentiment, as investors anticipated the eventual return of key economic data. The shutdown has delayed official releases on inflation, jobs, and other indicators, forcing traders to rely on private surveys. The absence of October Consumer Price Index and Producer Price Index data has complicated Federal Reserve decision-making and market forecasts.

Economists expect government agencies to release backlogged figures in stages once operations resume. However, officials at the White House and research desks warn that some data may never appear or may arrive with longer lags. Analysts note that September labor-market numbers could emerge relatively quickly, while clarity on October and November inflation may take longer.

Airline stocks showed how sensitive some sectors remain to the shutdown. Carriers such as Delta and United opened higher after news of progress in Washington, following weeks of disruption from unpaid air-traffic control staff and flight cancellations. Gains faded later in the session as investors assessed ongoing operational risks and holiday travel pressures.

Earnings Growth, AI, and 2026 Outlook Support Bull Case

Wall Street strategists continue to point to corporate earnings and artificial intelligence investment as key drivers of the stock market outlook. Additionally, research teams at major banks, including UBS and Morgan Stanley, project that the S&P 500 could reach 7,500 by the end of 2026. They expect technology companies to contribute a large share of profit growth over the next two years.

Recent earnings results have supported that view. Companies in the S&P 500 that have reported third-quarter numbers show profit growth in the mid-teens, well above earlier forecasts. Analysts highlight rising earnings revisions and more favorable guidance as signs that corporate America continues to adapt to higher rates and slower growth.

Additionally, strategists monitor how markets react to pullbacks in high-growth names, including semiconductor and AI-linked stocks. Many expect short bouts of volatility to continue as investors weigh concerns about an AI bubble against strong demand for advanced chips and cloud infrastructure.

Corporate moves that are reshaping global markets:

• Verizon plans to tap the bond market for about $10 billion to help pay for its purchase of Frontier Communications.

• Tyson Foods expects its results to stay roughly flat next year as ongoing losses in its beef business weigh on profit.

• Coinbase is preparing a new platform that will give select investors early access to fresh cryptocurrency listings.

• Instacart reported stronger-than-expected order growth and offered upbeat guidance, pointing to steady demand for online groceries.

• TSMC’s latest figures show revenue growth slowing, which has stirred doubts about how long the AI chip surge can last.

• Barrick is leaning on dividends and share buybacks to attract investors while new leaders work to fix its mining operations.

• Metsera’s stock fell after Novo Nordisk declined to raise its bid, bringing a high-profile takeover contest with Pfizer to a close.

• Roche said its multiple sclerosis drug cut relapse rates across most disease types in late-stage trials, strengthening its neurology pipeline.

• Restaurant Brands agreed to sell a majority stake in Burger King’s China business in a bid to jump-start expansion in that market.

• Private equity firm Permira will take JTC Plc private in a £2.3 billion deal, underscoring strong buyout interest in fund services companies.

Overall, optimism returned to Wall Street as progress on the US government shutdown lifted investor sentiment. Tech giants led the recovery, supported by strong earnings and AI-driven growth prospects. With data releases set to resume soon, markets appear poised for a steadier outlook heading into year-end.

Also Read: US Stock Market Today: S&P 500 Falls 0.9% & NASDAQ Dips 1.6%, as Tech Weakness and Labor Market Slowdown Boost Fed Cut Bets