The S&P 500 Index ($SPX) (SPY) on Monday closed up +1.54%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.81%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.20%. December E-mini S&P futures (ESZ25) rose +1.56%, and December E-mini Nasdaq futures (NQZ25) rose +2.22%.
US inventory indexes settled sharply larger on Monday in hopes that the US authorities will quickly reopen. On Sunday, a gaggle of eight Senate Democrats broke with their celebration to vote with Republicans to advance a invoice to reopen the federal government. The transfer boosted market sentiment and sparked a risk-on temper in asset markets. The Senate should nonetheless schedule a remaining vote, and the measure should go the Home earlier than reaching President Trump for his signature. The invoice would offer full-year funding for some departments, fund different companies via January 30, and supply pay for furloughed authorities employees. The invoice may even resume withheld federal funds to states and localities and recall company staff who had been laid off throughout the shutdown.
Be a part of 200K+ Subscribers: Discover out why the noon Barchart Transient publication is a must-read for hundreds day by day.
Shares added to their beneficial properties Monday afternoon after the White Home expressed help for the bipartisan deal to finish the US authorities shutdown. Home Speaker Johnson stated he would give Home lawmakers 36 hours’ discover to return to the Capitol as soon as the Senate passes the invoice. The ending of the shutdown would take away a progress headwind and uncertainty clouding the financial outlook.
Constructive feedback from San Francisco Fed President Mary Daly on Monday had been supportive for shares and bonds when she stated, “Up to now, the results of the tariffs have largely been confined to items, with little spillover into companies inflation or inflation expectations, which stay comparatively well-anchored round our 2% goal.” She added that “we additionally see a labor market that’s softening and wage progress that’s moderating, so that you’re actually not going to see a variety of stress on the price aspect of labor, which means we don’t need to make the error of holding on too lengthy to excessive rates of interest solely to search out out we’ve injured the financial system.”
Feedback from St. Louis Fed President Alberto Musalem on Monday had been hawkish when he stated he expects “a considerable rebound within the US financial system within the first quarter, and there’s restricted room for additional rate of interest reductions with out financial coverage turning into overly accommodative.”
The US authorities shutdown, now in its seventh week —the longest in historical past —is weighing on market sentiment and the US financial system. The federal government shutdown is delaying a bunch of presidency reviews and is having an adversarial impact on the US financial system.
The markets are discounting a 63% likelihood of one other -25 bp price reduce on the subsequent FOMC assembly on December 9-10.
The US Supreme Court docket final Wednesday appeared skeptical about whether or not President Trump’s reciprocal tariffs are authorized. Chief Justice Roberts and Justices Gorsuch and Coney questioned President Trump’s use of an emergency-powers regulation to gather tariffs, with Roberts saying the tariffs had been an “imposition of taxes on Individuals, and that has at all times been the core energy of Congress.” The Supreme Court docket is anticipated to subject its ruling by late this yr or early in 2026. Decrease courts have already dominated that Mr. Trump’s reciprocal tariffs are unlawful, discovering they’re primarily based on a specious declare of emergency authority underneath the 1977 Worldwide Emergency Financial Powers Act. If the US Supreme Court docket upholds these rulings and strikes down the tariffs, then the US authorities could should refund the reciprocal and fentanyl-linked tariffs already collected, totaling greater than $80 billion, and Mr. Trump’s energy to impose tariffs could also be restricted to well-founded sections of US commerce regulation, corresponding to sections 232, 301, and 201.
Q3 company earnings season is nearing its finish as 456 of the S&P 500 corporations have reported earnings outcomes. In accordance with Bloomberg Intelligence, 82% of the S&P 500 corporations which have reported to date have crushed forecasts, on track for the very best quarter since 2021. Q3 income have risen +14.6% to this point, greater than doubling expectations of +7.2% y/y.
Abroad inventory markets settled larger on Monday. The Euro Stoxx 50 closed up +1.769%. China’s Shanghai Composite rose to a 1-week excessive and closed up +0.53%. Japan’s Nikkei Inventory 225 closed up +1.26%.
Curiosity Charges
December 10-year T-notes (ZNZ5) on Monday closed down -5.5 ticks. The ten-year T-note yield rose by +1.5 bp to 4.112%. T-notes had been underneath stress on Monday amid a inventory rally, which curbed safe-haven demand for presidency debt. Additionally, hopes that the US authorities shutdown may be nearing an finish have lowered safe-haven demand for T-notes. As well as, hawkish feedback from St. Louis Fed President Alberto Musalem weighed on T-notes when he stated there’s restricted room for additional Fed rate of interest cuts.
Losses in T-notes had been restricted after San Francisco Fed President Mary Daly stated the US financial system might be struggling a downturn in demand, whereas tariff-related inflation seems to be contained for now, and warned in opposition to maintaining rates of interest too excessive for too lengthy. T-notes additionally garnered help from robust demand seen for the Treasury’s $58 billion public sale of 3-year T-notes that had a bid-to-cover ratio of two.85, properly above the 10-auction common of two.61 and the best in additional than two years.
T-note costs have underlying help from the continued US authorities shutdown, which is now the longest in historical past and will result in further job losses, lowered client spending, and a weakened US financial system, doubtlessly permitting the Fed to proceed reducing rates of interest.
European authorities bond yields had been blended on Monday. The ten-year German bund yield rose to a 1-month excessive of two.697% and completed up +0.2 bp to 2.668%. The ten-year UK gilt yield fell from a 2.5-week excessive of 4.509% and completed down -0.4 bp to 4.461%.
The Eurozone Nov Sentix investor confidence index unexpectedly fell -2.0 to -7.4, weaker than expectations of a rise to -4.0.
Swaps are discounting a 4% likelihood for a -25 bp price reduce by the ECB at its subsequent coverage assembly on December 18.
US Inventory Movers
AI infrastructure and semiconductor shares rallied on Monday and gave the broader market a raise. Palantir Applied sciences (PLTR) closed up greater than +9% to guide gainers within the S&P 500 and Nasdaq 100, and Micron Know-how (MU) and Western Digital (WDC) closed up greater than +6%. Additionally, Superior Micro Units (AMD) and Lam Analysis (LRCX) closed up greater than +4%, and ARM Holdings Plc (ARM), Broadcom (AVGO), Marvell Know-how (MRVL), Utilized Supplies (AMAT), and KLA Corp (KLAC) closed up greater than +2%. As well as, Analog Units (ADI) and GlobalFoundries (GFS) closed up greater than +1%.
The Magnificent Seven know-how shares moved larger on Monday, a supportive issue for the general market. Nvidia (NVDA) closed up greater than +5% and Tesla (TSLA) and Alphabet (GOOGL) closed up greater than +3%. Additionally, Amazon.com (AMZN), Meta Platforms (META), and Microsoft (MSFT) closed up greater than +1%. As well as, Apple (AAPL) closed up +0.36%.
Gold-producing shares jumped on Monday after the worth of COMEX gold rallied greater than +2% to a 2-week excessive. Anglogold Ashanti Plc (AU), Barrick Mining (B), Gold Fields Ltd (GFI), and Newmont (NEM) closed up greater than +5%.
TreeHouse Meals (THS) closed up greater than +22% after Investindustrial agreed to purchase the corporate for about $2.9 billion, or about $22.50 a share.
Albemarle (ALB) closed up greater than +6% after Scotiabank raised its value goal on the inventory to $85 from $70.
Celestica (CLS) closed up greater than +6% after Citigroup upgraded the inventory to purchase from impartial with a value goal of $375.
Eli Lilly & Co. (LLY) closed up greater than +4% after Leerink Companions upgraded the inventory to outperform from market carry out with a value goal of $1,104.
Tyson Meals (TSN) closed up greater than +2% after reporting This fall adjusted EPS of $1.15, stronger than the consensus of 84 cents.
Medical health insurance shares retreated on Monday as US lawmakers moved nearer to ending the federal government shutdown with out addressing the well being care system. In consequence, Oscar Well being (OSCR) closed down greater than -17% and Centene (CNC) closed down greater than -8% to guide losers within the S&P 500. Additionally, Molina Healthcare (MOH) closed down greater than -7% and Humana (HUM) closed down greater than -5%. As well as, Elevance Well being (ELV) closed down greater than -4%, and HCA Healthcare (HCA) and Common Well being Companies (UHS) closed down greater than -3%. Lastly, Cigna Group (CI) closed down greater than -2%.
Metsera (MTSR) closed down by greater than -15% after Novo Nordisk A/S declined to additional increase its provide to purchase the corporate, bringing a bidding warfare with Pfizer to an finish.
Monday.com (MNDY) closed down greater than -12% after forecasting This fall income of $328 million to $330 million, weaker than the consensus of $333.7 million.
Utilized Optoelectronics (AAOI) closed down greater than -11% after B. Riley Securities downgraded the inventory to promote from impartial with a value goal of $15.
Ball Corp (BALL) closed down greater than -5% after CEO Fisher stated he was stepping down, efficient instantly.
FedEx (FDX) and United Parcel Service (UPS) closed down greater than -3% after each corporations grounded their fleets of MD-11 plane following final Wednesday’s deadly crash of a UPS MD-11 plane in Louisville, Kentucky.
Earnings Studies(11/11/2025)
Amdocs Ltd (DOX) and Anglogold Ashanti Plc (AU).
On the date of publication,
Wealthy Asplund
didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions.
For extra data please view the Barchart Disclosure Coverage
right here.
Extra information from Barchart
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
