Global markets rally as U.S. Senate advances bill to end government shutdown

Monday 10 November 2025 - 12:20

By: Dakir Madiha

Global markets rally as U.S. Senate advances bill to end government shutdown

Global financial markets surged on Monday as investors welcomed progress toward ending the longest government shutdown in U.S. history. Late Sunday night, the Senate advanced a funding bill that could reopen the government and restore federal operations.

Global markets respond positively

Asian markets led the rally, with Japan’s Nikkei rising 1.2% to 50,897.20 and South Korea’s Kospi climbing 3.5%, the strongest gain in the region. In the U.S., stock futures followed suit, with S&P 500 futures up 0.8% and Nasdaq 100 futures soaring 1.3%, according to Reuters. European stock futures also rose amid anticipation of a resolution to the 40-day impasse that has disrupted federal services and delayed key economic data releases.

This market optimism was fueled by Sunday’s 60-40 Senate vote, which cleared the first procedural hurdle for legislation to reopen the government until January 30. The bill includes provisions to reinstate federal employees, ensure retroactive pay, and reverse layoffs. Senate Majority Leader John Thune emphasized urgency, stating, “The time to act is now.”

Tech stocks and risk appetite drive gains

The rally was spearheaded by technology stocks, which rebounded after last week’s concerns over artificial intelligence valuations. In Seoul, chipmaker SK Hynix surged 5.5%, while Samsung Electronics gained 2.4%. Tokyo Electron added 4.7% in Tokyo trading.

“Market participants are buying stocks in anticipation of gains on Wall Street later today, given expectations that the U.S. government shutdown could soon end,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

As risk appetite returned, safe-haven assets weakened. U.S. Treasury yields rose by four basis points to 4.14%, the Japanese yen depreciated against the dollar, and the risk-sensitive Australian dollar strengthened, according to ANZ strategists.

Mounting economic costs

The government shutdown, which began on October 1, has already taken a significant economic toll. The nonpartisan Congressional Budget Office estimates that the shutdown could reduce fourth-quarter GDP growth by 1.0 to 2.0 percentage points, with permanent losses of $7 to $14 billion. Over 2,000 flights were canceled on Sunday as unpaid air traffic controllers failed to show up for work.

Legislative hurdles remain

Despite Sunday’s breakthrough, the bill faces additional hurdles. Final Senate approval may take several days if Democrats mount opposition, and the measure must also pass the House of Representatives before reaching President Trump’s desk. Many Democrats remain opposed to the bill, as it does not guarantee an extension of Affordable Care Act subsidies, instead offering only a mid-December vote on the issue.