Key Highlights:
- Dow Jones futures climb as optimism builds over a potential U.S. government funding breakthrough.
- Market sentiment improves after China lifts restrictions on “dual-use” exports.
- Tech stocks rebound after last week’s AI-driven selloff.
Market Overview
U.S. stock futures advanced in early Monday trading as investors reacted positively to developments in Washington and Beijing. Dow Jones Industrial Average (DJIA) futures rose 0.18%, trading above 47,150 during European hours. The S&P 500 gained 0.70%, while the Nasdaq 100 jumped 1.24%, reaching 25,450.
Senate Progress Fuels Optimism
Investor confidence strengthened after the U.S. Senate advanced a government funding bill aimed at ending the current shutdown. The measure passed its initial vote 60-40, paving the way for an extension of Affordable Care Act subsidies. The proposal will now head to the House of Representatives, and once approved, will be sent to President Donald Trump for final authorization.
Although the process may take several days, the progress eased market tension and signaled a possible resolution to the political standoff.
China Trade Developments Lift Sentiment
Adding to the positive mood, China’s Ministry of Commerce announced a temporary suspension of its ban on approving exports of several “dual-use” materials — including gallium, germanium, antimony, and super-hard substances — to the United States.
The export suspension will remain in effect until November 27, 2026, signaling an effort to stabilize trade relations between the world’s two largest economies. This move is seen as a boost to global supply chains and a potential driver for industrial and tech-related stocks.
Wall Street Recovers After Tech Selloff
Wall Street suffered a sharp decline last week amid concerns over inflated AI valuations, triggering heavy selling in technology shares. However, the recent rebound suggests that investors are regaining confidence as economic and policy uncertainties begin to ease.
In corporate updates, Nvidia CEO Jensen Huang revealed that the company had asked TSMC to expand chip production capacity to meet soaring demand in the AI sector. Meanwhile, Pfizer announced plans to acquire Metsera for up to $10 billion, edging out Novo Nordisk in a competitive bid.
Outlook
With the Senate’s funding progress and China’s trade relaxation, market sentiment is improving ahead of the U.S. trading session. Analysts believe that if the bill passes swiftly, the Dow Jones and other major indices could continue their upward momentum through the week.
Still, investors remain cautious about valuation risks and upcoming economic data releases, which could influence short-term volatility.
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