Wall Street Bounces Back as Shutdown Nears End, Investors Await Data Resurgence
- Rahaman Hadisur
- 18 hours ago
- 1 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
U.S. financial markets rallied sharply after signs that the longest federal government shutdown in history may soon end, boosting investor confidence and renewing expectations for fresh economic data.
On Monday, global equities surged as the Senate advanced a funding bill that could reopen the government.
The MSCI global index climbed 1.4%, while U.S. equities gained: the S&P 500 rose by about 1.5% and Nasdaq futures jumped roughly 2.3%. Treasury prices fell, pushing yields higher a signal that risk appetite returned among investors.
Analysts say the rally reflects relief that a resolution could lift a thick “data fog” that’s plagued the markets. The shutdown had halted key economic releases, leaving investors and the Federal Reserve without fresh insights into inflation, employment, and growth.
“The end of the shutdown may help ease the recent liquidity squeeze at commercial banks … and allow government ‘liquidity’ balances to re-enter the private credit system,” noted Thierry Wizman, strategist at Macquarie Group.
Still, uncertainty remains. While the Senate moved forward, the bill still requires the House’s final vote and the president’s signature. Moreover, some data may never be released, including October’s jobs and inflation reports, per White House comments.
Treasury auctions this week are also being closely watched. With about $125 billion in U.S. government debt on offer, demand will be a key test of market confidence.
As the shutdown drama eases, markets are leaning in again but investors will be closely watching whether the data they’ve long been missing supports expectations of future interest rate cuts.
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