Tech stocks led the market higher at the opening bell on Monday after the Senate took a big step toward ending the record-breaking government shutdown that has clouded the picture of the economy.
The tech-heavy Nasdaq Composite (^IXIC) surged over 1.5%, while the S&P 500 (^GSPC) and Dow Jones Industrial Average climbed by around 1% and 0.5%, respectively.
Markets have turned upbeat amid optimism that the 39-day US shutdown could soon come to an end, after a weekend of dealmaking in Washington. A new bill was released late Sunday and quickly advanced in a key Senate procedural vote, after enough Democrats joined with Republicans to avoid a filibuster.
The prolonged shutdown has taken a toll on consumer confidence and the overall economy, with consumer sentiment dropping to just above record lows. Meanwhile, it has disrupted federal services and delayed the release of key economic data, complicating the Federal Reserve’s policymaking and Wall Street’s calculations. The Consumer Price Index (CPI) and Producer Price Index (PPI) inflation updates due this week are the latest to be hit.
Next up for the bill is a vote for final passage in the chamber, though its fate in the House remains uncertain. While it would reopen the government through Jan. 30, among other funding provisions, the deal lacks any immediate vote on the extension of healthcare subsidies earlier demanded by Democrats.
The moves higher come after a bumpy week on Wall Street, which saw the worst tech sell-off since April with the likes of Nvidia (NVDA) struggled to make headway amid persistent worries about an AI bubble and overbaked valuations.
This week, investors will turn their attention to corporate earnings, with tech releases from CoreWeave (CRWV), Oklo (OKLO), and Rocket Lab (RKLB). The entertainment sector will get a health check with results from The Walt Disney Company (DIS) and Paramount Skydance (PSKY).
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TSMC stock rises as Wall Street eyes Nvidia supplier’s sales update
Shares of TSMC (TSM, 2330.TW) rose in premarket as investors digested monthly sales figures from the world’s biggest contract chipmaker.
The supplier to Nvidia (NVDA) — formally named Taiwanese Semiconductor Manufacturing Co. — posted a 16.9% year-on-year rise in revenue for October amid resilient AI demand. Sales for this year to the end of October rose 33.8%, compared with the same period in 2024.
But October’s monthly growth was the slowest pace since February 2024, per Bloomberg. That could underscore recent worries about the staying power of the AI boom.
Bloomberg reports:
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