Stock futures roar higher on hope of government shutdown ending

U.S. stock futures surged Monday as an end to the government shutdown came into sight.

Futures tied to the S&P 500 were up nearly 1%, or 63 points, while the Dow Jones Industrial Average looked set to open higher by 178 points or 0.4%. Nasdaq futures were up 1.5%, about 375 points at 8:40 a.m. New York time.

Market enthusiasm came after the Senate voted 60-40 late on Nov. 9 to advance legislation to end the shutdown. Eight Democratic senators relented on long-held demands over health care policy and joined 52 Republicans to end the filibuster blocking the measure.

Reopening the government isn’t a done deal. The Senate is set to reconvene at 11 a.m. ET. Then the House must vote again before sending the bill to President Donald Trump.

Still, U.S. industry has weathered Washington’s ups and downs this year − most notably uncertainty about tariffs − better than many observers had expected. The percentage of S&P 500 companies reporting positive earnings surprises is above the 10-year average, according to an analysis from FactSet, while the magnitude of earnings surprises is equal to the 10-year average.

And on Nov. 9, analysts at Goldman Sachs weighed in on continued strong gains for stocks related to AI.

“Our equity strategists have argued that, although valuations are high, we are not yet clearly in bubble territory,” the group wrote, adding “there is nothing to stop markets from building in more upside. Indeed, a lesson of past bubbles is that investors may sacrifice considerable gains by stepping away too early, given that prices can rise well beyond fundamental value.”

This article originally appeared on USA TODAY: Stock futures roar higher after vote to reopen government