Closing Bell: Snapback Rally as Shutdown Nears Resolution

Key Points

• Markets closed higher, led by gains in the S&P 500 (+1.54%) and Nasdaq-100 (+2.20%), with small caps up 0.94%
• Senate advanced a bill to end the record U.S. government shutdown, funding operations through Jan. 30
• Health insurance stocks fell after the Senate passed a funding bill without extending ACA subsidies.

Markets moved higher today, with the S&P 500 (SPX) gaining 1.54% and the Nasdaq-100 (NDX) up 2.20%. Small caps rallied strongly as the Russell 2000 (RUT) advanced 0.94%. Leading sectors included Communication Services, Information Technology, and Consumer Discretionary, while Consumer Staples and Real Estate lagged behind.

Several bullish catalysts over the weekend fueled today’s equity gains, ranging from optimism about ending the government shutdown to a proposal from President Trump for $2,000 stimulus payments funded by tariff revenue, as well as the potential introduction of a 50-year mortgage in the housing market. Although concerns around A.I. were set aside—at least for today—several closely watched A.I. momentum names are scheduled to report earnings this week, including CoreWeave (CRWV) and Nebius Group (NBIS).

Senate Moves to End U.S. Government Shutdown

On Sunday evening, the Senate passed a procedural vote to begin ending the longest U.S. government shutdown in history. The bill would fund the government through January 30^th and provide full fiscal-year funding for SNAP food aid, among other key programs. According to news reports, the House of Representatives may vote on the measure as early as Wednesday. The resolution does not include an extension of current ACA subsidies.

Health Insurance Stocks Under Pressure

Health insurance stocks came under pressure after the Senate passed a potential government funding bill that excludes an extension of current Affordable Care Act (ACA) subsidies, a move that could impact several major health insurers. Senate Democrats remain hopeful that a floor vote will address the looming ACA subsidy cliff by December.

Grain Futures Rise as China Buying Prospects Improve

Grain markets received a boost in today’s session as China announced new measures to reduce trade restrictions, and physical grain traders reported an uptick in buying activity following the recent meeting between President Trump and President Xi. Due to the lack of USDA data caused by the U.S. government shutdown, official export sales figures have not been published. However, several private institutions indicate that Chinese buyers are booking soybean and wheat cargoes.

Key Market Events for Tomorrow

• All Day: Bank Holiday/ Veterans Day
• 6:00 AM ET: NFIB Small Business Index
• 10:25 PM ET: Fed’s Barr Speaks

Notable Earnings for Tomorrow

• Premarket: DAVA, HSAI, SE
• Postmarket: OKLO, BYND

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