U.S. stock-index futures surged higher Sunday night, after Congress narrowly avoided a government shutdown on Saturday.
On Saturday night, Congress approved a 45-day, bipartisan stopgap spending bill, which averted a shutdown — for now, at least — and put House Speaker Kevin McCarthy’s job at risk. Republican Rep. Matt Gaetz of Florida said Sunday he would seek to remove McCarthy from his leadership position for breaching agreements he made with hardline Republicans. “Bring it on,” McCarthy, a California Republican, said in response.
“With one of the potholes in Q4 economic growth seemingly filled temporarily, investors initially responded with a sense of relief,” Stephen Innes, managing partner of SPI Asset Management, wrote in a note Sunday.
“As policymakers kick the can down the road, it might nudge yields slightly higher as markets shift their focus away from the negative economic implications of a government shutdown to the hawkish Fed,” Innes continued, adding that a budget resolution appears more likely, “given the proximity of the new deadline to the holiday season.”
Last week, Wall Street closed out a miserable month, with the S&P 500
posting its worst monthly loss of the year, down nearly 5%. The Dow Jones Industrial Average
and Nasdaq Composite
also ended down for the month.