Key Points
- Nasdaq 100 rose 2.2% to 25,700, while the S&P 500 gained 1.5% and Chinese ADRs rallied 2.3%.
- Senate support for a stopgap funding bill lifted hopes for a swift U.S. government reopening and renewed risk sentiment.
U.S. stocks extended gains on Monday as progress toward ending the government shutdown reignited risk appetite. The Nasdaq 100 climbed 2.2% to 25,700, supported by a rebound in large-cap technology names, while the S&P 500 advanced 1.5%.
A gauge of U.S.-listed Chinese companies also rose 2.3%, reflecting improving sentiment toward growth-linked sectors.
The White House signalled its backing for a bipartisan Senate plan to reopen the government, now in its 40th day, fuelling optimism that the U.S. economy could avoid deeper disruption.
The potential resolution lifted consumer confidence expectations and improved risk appetite across asset classes.
Broader Market Sentiment Improves
Declines in Treasuries accompanied the rally in equities, as traders rotated into risk assets. The dollar index weakened, while gold and Bitcoin gained, indicating portfolio rebalancing into growth and inflation hedges.
A Bloomberg commodity gauge also hit its highest level since August 2022, suggesting improving demand expectations.
Treasuries now face a $125 billion auction this week, though the bond market closure for Veterans Day may temporarily dampen liquidity.
Asia to Track Wall Street Higher
Asian equity futures for Japan and Australia pointed to early gains, while Hong Kong remained steady. Regional data releases include Australia’s business confidence, New Zealand’s inflation expectations, and Japan’s current account balance.
Taiwan Semiconductor Manufacturing Co. reported slower monthly revenue growth, renewing debate over whether the AI-driven rally in chips and tech stocks can maintain momentum.
In Japan, Prime Minister Sanae Takaichi is expected to unveil her first stimulus package aimed at boosting growth through investment in 17 key industries, complementing global risk-on sentiment.
Technical Analysis
The Nasdaq 100 (NAS100) is trading around 25,700, extending its steady climb as tech stocks continue to recover from last week’s brief correction.
On the 15-minute chart, prices have rebounded from a recent low near 24,637, with a clear bullish crossover among short-term moving averages (5, 10, 30).
The MACD remains above the signal line, suggesting momentum is holding firm even as the pace of gains begins to moderate near the resistance zone at 25,700–25,800.
This rebound aligns with improved risk sentiment following renewed optimism around the U.S.–China trade dialogue and expectations that the Federal Reserve will maintain its dovish tone into December.
Tech giants are benefiting from easing Treasury yields, while traders digest mixed corporate earnings that continue to show resilience in growth sectors.
If the index manages to close decisively above 25,800, it could set the stage for a test of the 26,000 level. However, with momentum showing mild divergence and traders eyeing fresh macro data later in the week, a temporary pullback toward 25,400–25,300 cannot be ruled out.
Overall, the short-term structure remains bullish but increasingly dependent on risk appetite and Fed rate expectations.
Cautious Forecast
If the Senate finalises the shutdown deal, renewed optimism could lift the Nasdaq 100 toward 25,900–26,000. A failed vote or delay could trigger a mild correction back toward 25,400.
While momentum remains constructive, traders may remain cautious ahead of the release of delayed U.S. data, particularly employment figures expected within days of the government reopening.
