BANGKOK (AP) — Shares advanced in Europe and Asia on Monday as tentative moves by the U.S. Senate to end the federal government shutdown pushed U.S. futures higher.
The Senate voted late Sunday, in a test vote that begins a series of procedural maneuvers, to move toward passing compromise legislation to fund the federal government, though final passage could be several days away. The Senate may hold a vote by mid-December on extending expiring health care tax credits, the key sticking point.
Hopes for an end to the shutdown, the longest ever, pushed the future for the S&P 500 up 0.9%. The future for the Dow Jones Industrial Average gained 0.4%.
Germany’s DAX gained 1.8% to 23,988.83 and the CAC 40 in Paris jumped 1.4% to 8,060.64. Britain’s FTSE 100 rose 0.9% to 9,774.19.
Monday’s gains were led by a rebound in technology shares as investors’ alarm over the runup in stock prices related to the craze for artificial intelligence appeared to calm.
South Korea’s Kospi added 3% to 4,073.24. Computer chip maker SK Hynix, which is cooperating with Nvidia on artificial intelligence, surged 4.5%. Its bigger rival, Samsung Electronics, was up 2.8%.
Tokyo’s Nikkei 225 added 1.3% to 50,911.76, lifted by big gains for AI related shares such as chip maker Tokyo Electron, which surged 4.3%.
The Hang Seng in Hong Kong rose 1.6% to 26,649.06 and the Shanghai Composite index climbed 0.5% to 4,018.60.
Australia’s S&P/ASX 200 picked up 0.8% to 8,835.90.
Taiwan’s Taiex jumped 0.8%, while the Sensex in India gained 0.3%.
On Friday, stock indexes closed mixed on Wall Street, clocking their first weekly loss in the last four. The S&P 500 inched 0.1% higher and the Dow Jones Industrial Average added 0.2%. The technology-heavy Nasdaq fell as much as 2.1%, but recovered most of its losses, shedding 0.2%.
Major indexes wobbled throughout most of the week, weighed down by technology stocks, especially several big names with huge valuations that give them outsized influence over the direction of the market. Google’s parent company, Alphabet, fell 2.1% and Broadcom fell 1.7%.
Wall Street remains focused on the latest quarterly reports and forecasts from U.S. companies.
More than 90% of companies within the S&P 500 have reported earnings for their latest quarter. Most companies have reported growth beyond Wall Street expectations and the influential tech sector has the strongest growth, according to data from FactSet.
Corporate profits and forecasts were already being scrutinized by Wall Street as investors try to gauge whether the market’s overall high value is justified. The results have taken on more significance amid a lack of other data about the economy because of the U.S. government shutdown, which is now the longest on record.
The shutdown is responsible for delays in key economic data on inflation and employment that traders and the Federal Reserve rely on in making decisions about investments and policy. The lack of data on employment is especially troubling because the job market has been weakening.
The Fed has signaled a more cautious approach on interest rate cuts that Wall Street has been expecting to help stimulate the economy by reducing the cost of borrowing.
The Fed has already cut its benchmark rate twice this year as it tries to counter the impact that a weakening employment market could have on economic growth. Cutting rates could worsen inflation at a time when levels are stubbornly higher than the central bank’s 2% goal, however.
Wall Street is still mostly betting that the Fed will cut interest rates at its December meeting.
In other dealings early Monday, U.S. benchmark crude oil picked up 67 cents to $60.42 per barrel. Brent crude, the international standard, gained 62 cents to $64.25 per barrel.
The U.S. dollar rose to 154.17 Japanese yen from 153.72 yen. The euro inched up to $1.1569 from $1.1562.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated. The move comes amid a fraught time for the central bank, with hiring sluggish and yet inflation stuck above the Fed’s 2% target. Compounding its challenges, the central bank is navigating without much of the economic data it typically relies on from the government. The Fed has signaled it may reduce its key rate again in December but the data drought raises the uncertainty around its next moves. Fed Chair Jerome Powell told reporters that there were “strongly differing views” at the central bank's policy meeting about to proceed going forward.
The Federal Reserve will almost certainly cut its key interest rate on Wednesday and could signal it expects another cut in December as the central bank seeks to bolster hiring. A cut Wednesday would be the second this year and could benefit consumers by bringing down borrowing costs for mortgages and auto loans. Since Fed chair Jerome Powell strongly signaled in late August that rate cuts were likely this year, the average 30-year mortgage rate has fallen to about 6.2% from 6.6%. Still, the Fed is navigating an unusual period for the U.S. economy and its future moves are harder to anticipate than is typically the case.
Stocks are rallying toward more records ahead of a week packed with potentially market-moving events. The S&P 500 rose 1% Monday. The Dow Jones Industrial Average added 224 points, and the Nasdaq composite jumped 1.7%. Stocks also climbed in Asia ahead of a meeting on Thursday between the heads of the United States and China. The hope is that the talks could clear rising tensions between the world’s two largest economies. This upcoming week will feature profit reports from some of Wall Street's most influential companies and a meeting by the Federal Reserve on interest rates. Gold fell back toward $4,000 per ounce.
U.S. and Chinese officials say a trade deal between the world’s two largest economies is drawing closer. The sides have reached an initial consensus for President Donald Trump and Chinese leader Xi Jinping to aim to finalize during their high-stakes meeting Thursday in South Korea. Any agreement would be a relief to international markets. Trump's treasury secretary says discussions with China yielded preliminary agreements to stop the precursor chemicals for fentanyl from coming into the United States. Scott Bessent also says Beijing would make “substantial” purchases of soybean and other agricultural products while putting off export controls on rare earth elements needed for advanced technologies.
Some seniors say the Social Security Administration's cost-of-living adjustment won’t help much in their ability to pay for their daily expenses. The agency announced Friday the annual cost-of-living adjustment will go up by 2.8% in 2026, translating to an average increase of more than $56 for retirees every month. Eighty-year-old Florence, South Carolina, resident Linda Deas says it does not match the current "affordability crisis.” The benefits increase will go into effect for Social Security recipients beginning in January. Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown. Recipients got a 2.5% COLA boost in 2025 and a 3.2% increase in 2024.
Wall Street is heading for records after an update said U.S. households are feeling a bit less pain from inflation than feared. The S&P 500 climbed 1% Friday and was on track to top its all-time high set earlier this month. The Dow Jones Industrial Average jumped 529 points, and the Nasdaq composite rose 1.3%. Both are also heading toward records. The inflation data could clear the way for the Federal Reserve to keep cutting interest rates in hopes of helping the slowing job market. A strong earnings reports from Ford Motor and continued gains for AI stars also drove stocks higher.
Federal Reserve Chair Jerome Powell says that a sharp slowdown in hiring poses a growing risk to the U.S. economy.
Three researchers who probed the process of business innovation have won the Nobel memorial prize in economics for explaining how new products and inventions promote economic growth and human welfare, even as they leave older companies in the dust.
U.S. stocks are rising and recovering some of their sell-off from Friday. The S&P 500 climbed 1.6%.
