(NEW YORK) — Stocks closed markedly higher on Monday after the Senate voted hours earlier to advance a potential deal on the government shutdown, which has weighed on economic output and cast uncertainty over markets for well over a month.
The Dow Jones Industrial Average closed up 380 points, or 0.8%, while the S&P 500 climbed 1.5%. The tech-heavy Nasdaq increased 2.2%.
Lawmakers in a rare Sunday session cleared a key hurdle toward potentially reopening the government by advancing a short-term funding bill by a razor-thin vote of 60-40, just meeting the threshold for it to pass.
Stocks rebounded on Monday after major indices registered a loss over the previous week, a rare blemish that hadn’t happened in four weeks prior.
The economy has shown some signs of strain during the shutdown.
A report on Friday revealed a decline in shopper attitudes in November, leaving consumer sentiment at its lowest point since 2022, University of Michigan data showed.
The survey came days after data from the Federal Reserve Bank of New York showed Americans’ household debt levels have reached a record high.
Those developments could hold significant stakes for the wider economy, since consumer spending accounts for about two-thirds of U.S. economic activity.
Still, markets have proven resilient over a turbulent year marked by fluctuating tariffs, stubborn inflation and a slowdown of hiring. The tech giants have defied these headwinds, buoyed in part by an investment boom in artificial intelligence.
The S&P 500 has soared 14% in 2025, while the Dow has climbed 10%. The Nasdaq has surged 19%.
The Senate reconvened on Monday to continue working toward ending the federal government shutdown, which is now in its 41st day.
There are still some procedural measures necessary for the Senate to pass a deal on the government shutdown and send it for potential approval in the Republican-controlled House.
A potential resolution of the government shutdown would restore jobs and backpay for thousands of federal employees, which is expected to provide a jolt for the U.S. economy.
The federal government would also resume the collection and release of key government day in the event of shutdown deal, allowing investors to observe monthly inflation and hiring reports.
The Federal Reserve is set to issue a decision on the level of interest rates early next month. The central bank has slashed interest rates a quarter of a percentage point at each of its last two meetings.
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