Stocks Rally as Senate Moves to End Historic Shutdown, Fueling Risk-On Momentum – US Market Wrap

Wall Street traders piled into riskier sectors of the market, with stocks rising alongside Bitcoin as the US Senate advanced legislation to end the longest-ever government shutdown, removing a significant economic headwind. Bonds lost steam.

The risk-on bid increased the S&P 500 by 1.5%. Technology stocks, which had been hit the hardest in recent days, led the rally in equities. Treasuries fell as demand for safety waned, and the dollar underperformed the majority of its major peers.

The White House expressed support for a bipartisan agreement to end the US shutdown, a significant development that increases the likelihood that the government will reopen within days.

While the Senate has not yet scheduled a vote on final passage, and the House must also approve the measure before it is sent to Trump, markets viewed the move as a breakthrough. The end of the shutdown would provide investors with access to economic data as well as greater clarity on the Federal Reserve’s policy outlook.

The S&P 500 surpassed 6,800. A gauge of technology megacaps rose about 3%. US health-care insurers and hospitals fell as lawmakers moved closer to ending the shutdown without extending Affordable Care Act subsidies.

Short-dated bonds lagged the rest of the curve, with two-year yields rising three basis points to 3.59%. This week’s $125 billion in treasury auctions will put demand to the test. The bond market will be closed on Tuesday to commemorate Veterans Day.