Dow Futures Rise as Shutdown Ends Amid ACA Subsidies Dispute
Stock futures showed positive movement Sunday evening as a bill to end the longest-ever government shutdown progressed in the Senate. The short-term spending bill cleared a major procedural hurdle when seven Democratic senators and one independent joined Republicans in support.
This legislative breakthrough comes amidst ongoing challenges, including suspended SNAP payments and warnings from Transportation Secretary Scott Duffy about severe disruptions in air travel ahead of Thanksgiving, with thousands of flight cancellations reported over the weekend.
Market Reactions
- Dow Jones Industrial Average futures rose 66 points, or 0.14%.
- S&P 500 futures increased by 0.68%.
- Nasdaq futures surged 1.19%.
- The yield on the 10-year Treasury climbed 4.1 basis points to 4.134%.
- The US dollar strengthened 0.09% against the euro and 0.32% against the yen.
- Gold prices increased 1.16%, reaching $4,056.50 per ounce.
- Oil futures rose 0.74% to $60.19 per barrel, while Brent crude advanced 0.64% to $64.04.
Legislative Details
The approved bill will extend government funding through January 31 and allocate funds for SNAP and Veterans Affairs for the remainder of the fiscal year, ending next September. However, it does not include an extension for Affordable Care Act (ACA) subsidies, which expire at the end of the year — a key issue for Democrats during the shutdown.
"The breakthrough came as SNAP payments have been on hold after a brief respite, while Transportation Secretary Scott Duffy has issued dire warnings about air travel ahead of Thanksgiving with thousands of flights canceled this weekend."
"Democrats would not get an extension for Affordable Care Act subsidies, which expire at the end of the year and was their core demand during the shutdown."
By Jason Ma, weekend editor at Fortune, covering markets, economy, finance, and housing.
Summary: A bipartisan Senate vote ended the prolonged government shutdown by extending funding and SNAP payments but punted on extending ACA subsidies, impacting markets and holiday travel conditions.