Market Recovery: Wall Street Awaits Shutdown Conclusion

U.S. markets anticipate an upswing as Washington progresses towards ending the historic government shutdown. The closure has delayed economic data and intensified economic concerns. Ending the shutdown could boost market sentiment and allow for the release of key data, influencing sectors from technology to airlines.

U.S. stock indexes were set for a positive start on Monday, buoyed by developments in Washington aimed at closing the record-setting government shutdown. This prolonged closure had postponed important economic data and heightened anxiety about the economy's health. On Sunday, senators advanced a House-approved bill that, with further amendments, could reopen the government till January 30, pending Senate approval, House concurrence, and President Trump's endorsement.

Should the shutdown resolve, experts like Jefferies economist Mohit Kumar predict a short-term market uplift, as investors might start buying the dip. Additionally, freeing up governmental operations will enable the timely release of essential data, such as initial claims and employment reports, scheduled for early December.

Last week saw major U.S. indexes like the Nasdaq suffer considerable losses—its worst in over seven months—amid labor market concerns and tech sector valuation fears. Early trading on Monday showed Dow, S&P 500, and Nasdaq E-minis experiencing gains, while the CBOE Volatility Index eased, retreating from a recent peak.

The closure's impact extends to the broader economy, with millions of federal workers unpaid and advisor Kevin Hassett cautioning of possible negative growth in Q4 if it lingers. Airline stocks rose in premarket trade due to flight disruptions from staffing shortages. Meanwhile, tech stocks, led by Nvidia, Alphabet, and Meta, also climbed as enthusiasm over AI persists.

Third-quarter corporate earnings reporting neared completion with mostly positive outcomes, exemplified by Venture Global's 13% leap on profit news. Conversely, Metsera shares plunged after Pfizer's winning acquisition bid. Health insurers fell on President Trump's recent proposal affecting funds distribution under the Affordable Care Act.

(With inputs from agencies.)