Stocks Jump as Shutdown Deal Optimism Fuels Risk Appetite – Europe Market Wrap
Stocks climbed and bond yields rose as optimism that US lawmakers are closing in on a deal to end the longest government shutdown in history lifted demand for risk assets.
Futures on the S&P 500 gained 0.9% after a group of Senate Democrats broke ranks to help Republicans advance a funding bill. Nasdaq 100 contracts jumped 1.5%, rebounding from the index’s worst week since April. Nvidia led gains among the group of megacap tech stocks known as the Magnificent Seven, rising more than 3% in premarket trading.
The upbeat tone offered a respite after last week’s turbulent trading, when concerns over stretched valuations triggered a sharp selloff in technology shares. A resolution to the shutdown would restore access to crucial economic data on employment and inflation, giving investors clearer guidance on the Federal Reserve’s next moves on interest rates.
The risk-on mood rippled through global markets, with oil, metals, and Bitcoin all advancing. Europe’s Stoxx 600 headed for its biggest gain since June. Treasuries fell across the curve, pushing the 10-year yield up three basis points to 4.12%. Gold also rose, supported by bets the Fed could deliver a rate cut next month.
Still, uncertainty lingers over the timeline for ending the shutdown. The Senate has yet to schedule a final vote, and the measure must also clear the House before reaching President Donald Trump for signature.
