Investors are hoping this will be the day the record-long government shutdown finally ends.
The House is set to pass the spending package late Wednesday intended to reopen the government. The bill, which extends federal government funding until Jan. 30, then goes to President Trump’s desk.
The Dow industrials rallied 0.7% Wednesday, closing above 48000 for the first time. However, big technology stocks such as Palantir, Oracle, Meta Platforms and Tesla dropped. The Nasdaq composite slipped 0.3%, while the S&P 500 finished less than 0.1% higher.
The government reopening is expected to resolve one source of investor uncertainty by unleashing delayed economic data, such as the September jobs report, as soon as next week. But government reports on inflation and the labor market for October are “likely never” to be released, the White House press secretary said Wednesday.
One big question is whether the Federal Reserve will cut interest rates again in December. Policymakers are split over which poses the greater threat, inflation or the weakening jobs market. Boston Fed President Susan Collins said Wednesday she thought the central bank should hold rates steady after having cut them at the past two meetings.
Treasury yields declined, with the 10-year’s retreating to 4.066%. Treasury Secretary Scott Bessent said Wednesday that the administration deserved credit for this year’s rally in government bonds.
