Dow Jones Today: Stocks Surge on Optimism for Shutdown Deal
Major stock indexes rallied Monday following a tough week, driven by optimism that a deal to end the record U.S. government shutdown is near. The tech-heavy Nasdaq, benchmark S&P 500, and blue-chip Dow Jones Industrial Average rose by 2.1%, 1.4%, and 0.7%, respectively, in recent trading.
Weekly Market Performance
- The Nasdaq dropped 3% last week, its worst weekly result since President Donald Trump's "Liberation Day" tariffs rattled markets in early April.
- The S&P 500 fell 1.6%.
- The Dow Jones declined 1.2%.
Legislative Progress on Shutdown
Late Sunday, the Senate passed a procedural motion allowing votes on a potential agreement to end the shutdown, which has lasted 41 days. Eight Democrats joined Republicans to reach the 60-vote threshold required to advance the measure.
Economic Impact
The shutdown is affecting consumer confidence, which dropped to its lowest point since June 2022, coinciding with peak post-pandemic inflation at a 40-year high, according to a monthly University of Michigan survey.
"Consumer sentiment fell to its lowest level since June 2022, when post-pandemic inflation peaked at its highest rate in 40 years."
Financial Market Movements
- The yield on the 10-year Treasury, which influences consumer loan rates such as mortgages, edged up to 4.11% from 4.10% on Friday.
- The bond market will be closed tomorrow for Veterans Day, though stock markets remain open.
- Gold futures rose nearly 3% to $4,115 an ounce.
- West Texas Intermediate crude oil futures increased slightly to $60 a barrel.
- Bitcoin traded around $106,000, rebounding from a weekend low below $101,500.
- The dollar index was stable near 99.58, tracking the greenback against a basket of foreign currencies.
Summary
Stocks rallied on Monday as investor optimism grew around a deal to end the prolonged U.S. government shutdown, despite ongoing economic concerns.