Stocks Rebound as Shutdown Deal Nears, Boosting Hopes for Fed Clarity – US Market Wrap

Wall Street’s bets that the longest shutdown in US history will soon end drove a stock rebound, fuelling hopes that access to official economic data will shed light on the Federal Reserve’s outlook.

The S&P 500 recovered losses, with approximately 345 shares gaining. The Dow Jones Industrial Average rose 1.2%. FedEx, a barometer of the economy, jumped more than 5% as it expects profits to increase this quarter compared to last year. Nvidia shares fell 3% after SoftBank sold its entire stake in the chipmaker for $5.83 billion to fund artificial intelligence investments.

With the bond market closed for Veterans Day, Treasury futures rose after ADP Research data showed that the labour market slowed in the second half of last month. Traders have relied on private numbers as the government shutdown has slowed the release of official data.

A record-breaking US government shutdown is set to end as soon as Wednesday after the Senate approved a temporary funding measure. The House, which plans to return to Washington to consider the spending package, will now decide whether to reopen the government. It would keep the majority of the government open until January 30 and some agencies until September 30.
If passed, the bill will go to Trump, who has already endorsed it.