The Nasdaq surged 2.3%—its strongest gain since May—as optimism grew that Congress will soon end the record-long U.S. government shutdown. Tech stocks led the rebound while investors shifted from fear to cautious optimism.
Wall Street rallied on Monday as investors cheered signs that Washington’s historic government shutdown may finally be nearing its end.
The Nasdaq Composite jumped 2.3%, marking its biggest single-day gain since late May.
The Senate passed a key procedural vote late Sunday that could pave the way to reopen the federal government after weeks of political gridlock. The measure now heads back to the Republican-led House for a final vote.
As prospects for a resolution brightened, risk appetite roared back, fueling a broad-based market rally led by technology and growth stocks.
Big Tech spearheaded Monday’s rally. Members of the so-called “Magnificent Seven”—including Alphabet, Nvidia, Tesla, Apple, Amazon, Meta, and Microsoft—all gained sharply.
Chipmakers Micron Technology and TSMC also rallied as investors bet on a rebound in semiconductor demand and AI-related hardware spending.
Analysts said optimism was driven by expectations that a reopened government would release a backlog of key economic data, including the long-delayed September jobs report—a critical input for the Federal Reserve’s December interest-rate decision.
A reopened federal government means millions of public employees will finally receive back pay, injecting short-term momentum into consumer spending and the broader economy.
Economists described it as a “temporary demand boost” heading into the holiday season.
Still, not all signals were positive. President Donald Trump drew criticism after threatening to dock the pay of federal workers who skipped shifts during the shutdown—including air-traffic controllers.
Nevertheless, airlines welcomed the progress, as the expected reopening would help normalize travel operations before the busy Thanksgiving period.
The optimism wasn’t confined to the U.S.
Across Asia, Japan’s Nikkei 225 and Hong Kong’s Hang Seng both rose more than 1%, while Europe’s Stoxx 600 advanced in tandem.
In China, data showed deflationary pressures easing in October, a relief to investors worried about prolonged stagnation. That shift helped trigger inflows back into risk assets, pushing regional stocks higher.
The rally extended beyond equities.
Bitcoin prices jumped, lifting crypto-sensitive stocks like Robinhood and Coinbase, as traders sought riskier bets amid improving sentiment.
At the same time, safe-haven assets also caught bids—a sign that caution lingers.
Gold futures rose toward $2,390 per ounce, while 10-year Treasury yields climbed above 4.5%.
This dual move reflected a balanced positioning by investors—embracing risk but keeping hedges intact ahead of key economic releases.
Away from Washington politics, billionaire investor Warren Buffett issued a statement reaffirming his long-term confidence in Berkshire Hathaway.
He said he intends to hold a “significant amount” of Berkshire’s Class A shares until shareholders feel fully confident in his eventual successor.
The remarks, coming from the 94-year-old chairman, were interpreted as a stability signal for markets that still look to Buffett’s discipline and prudence as a barometer of long-term investing confidence.
Investors now turn their focus to two crucial factors:
The Fed’s December Decision:
If the upcoming labor and inflation data confirm a cooling economy, the Fed may pause—or even cut—rates sooner than expected. That could further fuel equity gains into year-end.
Economic Re-acceleration Post-Shutdown:
With the government back online, a flood of delayed data—from GDP to CPI—will give a clearer picture of underlying growth. The results could determine whether this rally extends or fades.
Market volatility may remain elevated as traders reassess political risk and cost of capital, especially ahead of the 2026 fiscal debates.
Market strategists caution that while Monday’s rally signals optimism, it may not yet mark a full-fledged turnaround.
“Investors are shifting from fear to hope—but hope alone doesn’t make a trend,” one analyst told Bloomberg.
Others added that sustained gains will require confirmation from economic fundamentals and policy clarity—particularly around fiscal spending and Fed signals.
Still, the breadth of Monday’s advance—spanning tech, financials, and industrials—suggests the market’s risk sentiment has decisively improved after weeks of uncertainty.
Monday’s rally gave Wall Street its best day in months, restoring some confidence after weeks of political paralysis.
Every major index ended higher, signaling that investors are again willing to price in a more stable outlook.
Yet, as one trader put it, “The market might be celebrating—but the Fed isn’t yet convinced.”
Inflation remains above target, growth is uneven, and political tensions could still resurface.
For now, though, the Nasdaq’s strongest performance since May stands as a reminder: even in uncertain times, hope remains a powerful market force.
1. Why did the Nasdaq surge on November 10, 2025?
Because progress in Congress suggested the end of the record-long U.S. government shutdown, boosting investor confidence.
2. Which stocks led the rally?
Technology and semiconductor names—particularly the “Magnificent Seven” and chipmakers like Micron and TSMC—led the gains.
3. How will the government reopening affect the economy?
Federal employees receiving back pay will likely increase consumer spending, while delayed economic data will help guide the Fed’s next policy moves.
4. What are investors watching next?
Upcoming inflation and jobs reports, which will determine whether the Fed maintains or lowers rates in December.
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