The final session results indicate that the selective index Dow Jones Industrial Average gained 0.81%, the tech-heavy Nasdaq advanced 2.27%, and the broad S&P500 rose 1.54%.
“Investors are clinging to the news that the Senate is preparing to adopt a measure aimed at reopening the government,” following the longest shutdown in the country’s history, summarized Jack Albin of Cresset in a statement to AFP.
On Sunday, an agreement was reached in the Senate between the Republican majority and some Democrats. The adoption of a new budgetary text is expected today, even if it extends into the night.
It will then be up to the House of Representatives to examine the approved text, and if they also approve, Donald Trump will sign it into law.
“We’ll see if the government reopens in the coming days,” which “would be good for consumers and investors,” said Albin.
Since October 1, the start of the stalemate, more than a million public servants have not been paid, the payment of some social benefits has been heavily disrupted, as has air traffic, with hundreds of flights canceled every day.
An eventual reopening “strengthens growth prospects and revives optimism,” considered Jose Torres of Interactive Brokers.
A resolution would also allow investors to regain access to official economic statistics, which have not been published.
Thanks to these indicators, they could refine their expectations regarding the future monetary policy of the central bank.
Among the listed companies, after steep declines last week, tech conglomerates “benefited from a general buying trend,” thanks to their relatively low prices, noted Patrick O’Hare of Briefing.com.
Nvidia, which rose 5.79%, Microsoft (+1.85%), and Alphabet (+4.04%), Google’s parent company, were notable examples.
