The government-reopening trade has kicked in to start the week.
US stocks were up sharply on Monday after Senate lawmakers moved to advance a federal funding bill, leading to risk appetite returning among investors as they positioned for an end to the longest government shutdown in history.
Tech stocks led indexes higher. The Nasdaq 100, which logged its worst losing week since the tariff-fueled sell-off in April, rose almost 2%.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
Here were some of the big moves in tech:
The government reopening trade
Bond yields, which move inversely to prices, were higher as investors moved back into risk assets. The benchmark 10-year US Treasury yield climbed four basis points to trade around 3.91%.
Crypto markets also got a boost. The price of bitcoin surged 1.3% to trade around $106,000. Ethereum was up 3% to trade around $3,600.
Gold, which has traded similarly to other risk assets in the last few months, also climbed 2.2% to trade around $4,100 an ounce.
The moves are clear signs that investors are ready to resume the bull rally after a brutal sell-off last week, driven by valuation fears and concerns over the economic impact of the shutdown.
Should the funding bill pass, it would bring an end to the longest government shutdown in history, which has left markets in the dark on inflation, jobs data, and other key economic indicators over the last several weeks.
The dearth of available data has also clouded the outlook for Fed rate cuts heading into 2026.
“Market participants are hoping that the end of the shutdown will lead to a resumption in the collection and release of the government’s economic data updates,” David Morrison, a senior market analyst at Trade Nation, wrote in a note on Monday. “Everyone, from traders to the Federal Reserve, have been flying blind since the beginning of October,” he added.
“We are buyers of this dip and maintain our tactical bullish call,” strategists on JPMorgan’s markets intelligence desk wrote on Monday. “The biggest near-term catalyst would be a reopening of the government which would buttress current quarter GDP forecasts but also may release more liquidity into the market, which typically is supportive of stocks.”
Markets were also mulling the possible impact of fresh consumer stimulus teased by Trump. The president suggested he could use tariff revenue to issue a $2,000 dividend to all Americans, except those with higher incomes. If the measure is approved, it would be potentially bullish for assets like stocks, but also possibly an new catalyst for inflation to rise, similar to the stimulus checks sent out during the pandemic.
“We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion,” the president wrote in a post on Truth Social over the weekend.