Wall Street futures rose sharply late-Sunday after the Senate voted in favor of a key step towards ending the longest ever government shutdown in the country.
Futures rose after Wall Street logged steep losses through the past week as investors dumped technology stocks amid heightened concerns over a potential artificial intelligence-fueled bubble
S&P 500 Futures rose 0.7% to 6,800.25 points by 22:47 ET (03:47 GMT). Nasdaq 100 Futures rose 1.2% to 25,471.0 points, while Dow Jones Futures rose 0.2% to 47,160.0 points.
Senate votes to break Democratic filibuster, spending bill progresses The U.S. Senate on Sunday evening voted 60-40 to end a Democrat-backed filibuster and advanced a spending bill for consideration.
The break came after eight Democratic senators reached a deal with Republican leaders to reopen the government in exchange for a future vote on extending affordable care subsidies, as the GOP had demanded.
The spending bill will now be considered again on the Senate floor, and requires 60 votes to pass.
The prospect of a potential breakthrough in Congress encouraged investors, as the U.S. economy grapples with its longest ever government shutdown. The shutdown entered its 40th day on Sunday, as Congress failed to approve a series of funding bills amid disagreements over healthcare subsidies.
The shutdown sparked disruptions across the country, especially in key sectors such as air travel. Traders also fretted over the shutdown’s impact on gross domestic product and employment, as thousands of federal employees became furloughed.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The shutdown also brewed more uncertainty over the economy, especially as it delayed the release of several key readings from the government.
Wall St seeks recovery after big tech beatdown Sunday’s jump in futures also came as Wall Street attempted to steady from steep losses over the past week, especially in the technology sector.
Investors were seen rapidly exiting tech stocks amid a slew of warnings that high valuations in the sector were unsustainable, and that optimism over AI was overdone.
The S&P 500 fell 1.6% last week to 6,728.80 points. The NASDAQ Composite slid 3% to 23,004.54 points, while the Dow Jones Industrial Average fell 1.2% to 46,987.10 points.
Major tech shares such as NVIDIA Corporation (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT), were sold en masse last week. Nvidia slid over 7%.
Markets were also rattled by questions over whether the Federal Reserve will cut interest rates in December. Traders were seen pricing in a 61.9% chance for a 25 basis point cut, and a 38.1% chance for a hold, CME Fedwatch showed.
