AI giants drive markets higher after lawmakers advance plan to reopen US government
A critical breakthrough in the US Senate has propelled global markets higher, with artificial intelligence leaders and Big Tech stocks leading a powerful rebound, according to CNBC.
On Monday, the Dow Jones Industrial Average climbed 381.53 points (0.8 percent) to 47,368.63, the S&P 500 surged 1.5 percent to 6,832.43, and the Nasdaq Composite jumped 2.3 percent to 23,527.17—its best performance since May.
According to BNN Bloomberg, Nvidia soared 5.8 percent, powering the rally after last week’s sharp tech selloff.
Palantir Technologies also posted an 8.8 percent gain, while Microsoft recovered 1.9 percent, ending its longest losing streak since 2011.
Taiwan Semiconductor Manufacturing Co. advanced 3.1 percent after reporting a 17 percent year-over-year revenue increase in October, though this marked a slowdown from previous periods.
The US Senate’s procedural vote, supported by a coalition that included eight Democrats breaking with party leadership, set the stage for a deal to reopen the government into January and reverse some recent federal layoffs, as reported by CNBC.
The agreement also includes future protections for government workers and calls for a December vote on Affordable Care Act subsidies.
However, uncertainty around US health care tax credits weighed on health insurers, with Humana, Elevance Health, and Centene all posting significant declines, BNN Bloomberg noted.
The ongoing shutdown has also led to the suspension of key economic data releases, including consumer and producer price indexes, and pushed consumer sentiment to a three-year low, according to a University of Michigan survey cited by CNBC.
Globally, optimism spread to European and Asian markets.
South Korea’s Kospi surged 3 percent, with SK Hynix and Samsung Electronics both advancing, as per BNN Bloomberg. Meanwhile, the 10-year US Treasury yield held steady at 4.11 percent.
As reported by CNBC, Tim Holland, chief investment officer at Orion, highlighted that the removal of shutdown risk, strong earnings growth, and favourable seasonality could keep risk assets attractive into year-end.
