Stock futures surge as Senate nears agreement to end government shutdown: Live updates
The stock market is experiencing a surge in anticipation of a potential resolution to the ongoing U.S. government shutdown. Stock futures are rising as lawmakers in the Senate approach a deal that could end the historic 39-day shutdown.
The S&P 500 futures are up 0.4%, and Nasdaq-100 futures are trading 0.6% higher. Futures tied to the Dow Jones Industrial Average rose 123 points, or 0.3%.
Investors are closely monitoring the negotiations to pass a federal funding bill, which would not only end the shutdown but also reverse recent mass federal layoffs. A deal being discussed on Sunday could reopen the government into January, according to sources familiar with the situation.
The Senate may vote on the deal as early as Sunday evening, and if passed, it would need to be approved by the House of Representatives and signed into law before the shutdown could officially end. This potential agreement also includes future protections for government workers, addressing a key concern for many.
The shutdown has significantly impacted consumer sentiment, driving it to its lowest level in over three years, according to a University of Michigan survey. Federal agencies have ceased releasing critical economic reports, including the Consumer Price Index and Producer Price Index, due to the shutdown.
The stock market has been under pressure this week, with the Nasdaq Composite experiencing its worst week since April's tariff-driven selloff, losing 3%. The S&P 500 and Dow Jones Industrial Average also suffered losses of 1.6% and 1.2%, respectively.
Despite these challenges, investors are awaiting a handful of earnings reports this week, including Walt Disney's quarterly results on Thursday. Wedbush analyst Dan Ives notes a 'risk-off rally' in tech AI stalwart names, indicating a shift in market sentiment.
In other news, Pfizer has secured a $10 billion deal to acquire obesity drug developer Metsera, following a bidding war with Novo Nordisk. The acquisition includes a contingent value right, offering additional payments to holders.
Meanwhile, Senate Democrats are reportedly open to a deal to reopen the government, with negotiations ongoing. Lawmakers are said to be more receptive to a spending package once certain budget details are finalized, including provisions to protect federal workers from job cuts.
The U.S. government shutdown, set to enter its seventh week on Monday, marks the longest such closure in history.
