US stock futures remained relatively stable on Monday night, as investors took a moment to pause following a rally driven by optimism surrounding a potential resolution to the ongoing government shutdown. Futures linked to the Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq 100 hovered close to the baseline.
Earlier in the day, all three major indexes recorded significant increases, with the Nasdaq Composite seeing a notable surge of 2.3%. This marked its largest single-day gain since late May, as investors rushed back into artificial intelligence stocks after the previous week’s technology sell-off. The positive momentum was amplified by signs that lawmakers were moving towards an agreement to reopen the federal government.
In the Senate, a bipartisan funding measure was expected to be voted on Monday evening. This measure aims to keep government agencies operational through January and addresses some recent furloughs. Notably, it excludes a Democratic push to connect government funding with an extension of Affordable Care Act subsidies, deferring that issue for a separate vote in December.
The anticipation of a potential end to the shutdown contributed significantly to improved investor sentiment after weeks of uncertainty. Nvidia led the charge among tech stocks, surging nearly 6% and accounting for more than 25% of the S&P 500’s gains. Tech heavyweights Alphabet and Microsoft also contributed to the upward momentum, rising 4% and 1.9% respectively. Microsoft’s increase marked the end of an eight-day losing streak for the company.
In the midst of this market activity, earnings season continued to influence stock prices. CoreWeave experienced a decline of over 5% in after-hours trading following its earnings report. Investors are now keenly awaiting upcoming earnings announcements from major companies including Disney, Sony, and Cisco, all scheduled for release this week.
Overall, the market appears to be at a pivotal moment, balancing between investor optimism about government stability and ongoing corporate performances as earnings reports are unveiled.
