Stocks closed sharply higher on Monday after the Senate voted hours earlier to advance a possible deal on the government shutdown, which has weighed on economic output and sowed uncertainty in markets for more than a month.
The Dow Jones Industrial Average closed up 380 points, or 0.8%, while the S&The P 500 rose 1.5%. The tech-heavy Nasdaq rose 2.2%.
In a rare Sunday session, lawmakers cleared a key hurdle to a potential government reopening by pushing a short-term funding bill by a razor-thin 60-40 vote, barely meeting the threshold for passage.
Stocks rebounded on Monday after major indexes posted a loss over the previous week, a rare blemish that had not occurred in the previous four weeks.
The economy has shown some signs of strain during the lockdown.
A report on Friday revealed a decline in buyer sentiment in November, leaving consumer confidence at its lowest point since 2022. University of Michigan the data showed.
The survey came days after data from the Federal Reserve Bank of New York showed that American household debt levels have reached a record high.
Such developments could pose significant risks to the broader economy, as consumer spending accounts for about two-thirds of U.S. economic activity.
Traders work on the floor of the New York Stock Exchange (NYSE) on November 7, 2025 in New York City.
Spencer Platt/Getty Images
Still, markets have shown resilience during a turbulent year marked by fluctuating rates, persistent inflation and a slowdown in hiring. Tech giants have defied these headwinds, driven in part by a boom in investment in artificial intelligence.
the&The P 500 has soared 14% in 2025, while the Dow Jones is up 10%. The Nasdaq is up 19%.
The Senate reconvened on Monday to continue working to end the federal government shutdown, now in its 41st day.
Some procedural steps are still needed for the Senate to approve a government shutdown deal and send it for possible approval in the Republican-controlled House of Representatives.
A possible resolution to the government shutdown would restore jobs and pay thousands of federal employees, which is expected to provide a boost to the U.S. economy.
The federal government would also resume collecting and publishing key government days in the event of a shutdown deal, allowing investors to watch monthly inflation and hiring reports.
The Federal Reserve will issue a decision on the level of interest rates early next month. The central bank has cut interest rates by a quarter of a percentage point in each of its last two meetings.
