Trump approves government shutdown end! Bloomberg: Reopening will drive US stocks to surge by 400 points

On Monday (November 10), local time, U.S. President Trump expressed support for a bipartisan agreement to end the government shutdown. Bloomberg reported that this key development could lead to the government reopening within days. Trump told reporters in the White House Oval Office, “We have enough support from Democrats, and we will reopen our country.” Driven by an optimistic atmosphere, the Dow rose nearly 400 points on Monday, and the S&P 500 increased by 1.54%.

Trump Oval Office Expresses Support for Bipartisan Agreement

(Source: Bloomberg)

During an interview in the White House Oval Office on Monday, Trump stated that he supports the agreement that crossed an important procedural threshold in the Senate last Sunday night. This marks Trump’s first clear public support for a specific plan to end the shutdown, signaling the end of the 41-day political deadlock. Trump told reporters, “They (the two parties) want to make some slight changes to the agreement, but I support it. From what I hear, they haven’t changed anything. We have enough Democratic support, and we will reopen our country. It’s unfortunate about the shutdown, but we will reopen our country very soon.”

Trump’s stance is crucial because, in the U.S. political system, the president’s position often influences how Republican members of Congress vote. Prior to this, although the Senate had reached a framework for the agreement, Trump’s ambiguous attitude caused Republican lawmakers to worry that supporting the deal might lead to criticism from the president. His clear support alleviates these concerns and paves the way for the agreement’s passage in the House.

When asked whether he would rescind the large-scale layoffs caused by the shutdown, Trump said he would “comply with the agreement.” This statement hints that Trump is willing to make certain compromises to end the shutdown and will not insist on some hardline positions. This pragmatic attitude contrasts with his more radical rhetoric during the campaign, indicating that Trump recognizes the rising negative impact of the prolonged shutdown on his political reputation and the economy.

Senate Majority Leader John Thune said he expects President Trump to sign the bill once Congress passes it. This expectation provides clear confidence to the markets, leading investors to believe that the shutdown’s end is a certainty rather than just a negotiation phase. If the bill passes, it will be sent to the House for a vote and then to Trump for signature, officially ending the shutdown.

U.S. Stocks Hit Best Single-Day Performance Since May, Market Celebrates

Driven by an optimistic atmosphere, the Dow rose nearly 400 points on Monday, the S&P 500 increased by 1.54%, and the Nasdaq surged by 2.27%, both marking their best single-day performance since May. This broad and strong rally indicates that the market’s reaction to Trump’s statement is extremely positive. Investors clearly believe that ending the shutdown will eliminate significant uncertainties facing the U.S. economy.

The Nasdaq’s 2.27% surge is particularly noteworthy because tech stocks are usually more sensitive to policy uncertainties. During the shutdown, many tech companies worried about delays in government procurement orders, regulatory approvals, and overall recession risks. Trump’s statement alleviated these concerns, releasing pent-up buying demand. The 1.54% rise in the S&P 500 reflects a comprehensive recovery of market confidence across sectors such as finance, energy, and industrials.

The nearly 400-point gain in the Dow reflects a strong rebound in traditional blue-chip stocks. These companies often have close ties to government contracts and infrastructure spending. The end of the shutdown means frozen projects will restart, delayed payments will resume, and this is a significant positive for their cash flow and business outlook.

From a technical perspective, the S&P 500 and Nasdaq’s best single-day performance since May suggests that this rally has broken through months of consolidation. If this upward momentum continues, U.S. stocks could enter a new bullish cycle. However, investors should also be cautious, as sudden surges driven by political developments often come with high volatility. If the agreement faces unexpected resistance in the House, markets could experience sharp reversals.

Senate Passes 60-40 Vote; House to Vote Wednesday

On Sunday evening, local time, the U.S. Senate approved a procedural measure with a vote of 60 in favor and 40 against, advancing a temporary funding bill. This marks an important step toward reactivating the federal government. The 60-vote threshold is significant because, under Senate rules, at least 60 votes are needed to end lengthy debate and proceed to a vote on the bill. This indicates that at least 10 Democratic senators crossed party lines to support the measure, demonstrating genuine bipartisan backing.

Under the agreement, Congress will allocate full-year funding for the Department of Agriculture, Veterans Affairs, and Congress itself through September 2026, while providing funding for other agencies until January 30. The bill will also pay federal workers who were furloughed, restore withheld payments to states and local governments, and recall agency employees laid off during the shutdown. Additionally, the bill will prohibit federal layoffs before January 30.

Key Provisions of the Agreement

Full-year funding departments: Department of Agriculture, Veterans Affairs, and Congress through September 2026

Temporary funding departments: Other federal agencies until January 30

Employee protections: Back pay, recall of furloughed employees, and a ban on layoffs before January 30

Restoration of federal funds: Payments withheld from states and local governments will be resumed

The Senate still needs to complete potentially time-consuming procedures, and House members must return to Washington for their first vote since September 19. It is expected that the Senate will hold a final vote on the spending bill later Monday. Afterward, the bill will go to the House for approval, possibly on Wednesday.

House Speaker Mike Johnson said that once the Senate passes the bill, he will notify House members to return to Congress 36 hours in advance. This schedule suggests that if the Senate approves Monday night, the House could vote as early as Wednesday, and Trump could sign the bill by Wednesday or Thursday, potentially reopening the government before the weekend.

Divisions Within the Democratic Party and Challenges to the Agreement

The moderate Senate agreement, which did not include provisions sought by Democrats to extend subsidies for the Affordable Care Act, has sparked strong opposition within the Democratic Party. California Governor Gavin Newsom called the deal “disappointing,” while Illinois Governor JB Pritzker criticized Republican concessions as “a hollow check.”

This intra-party disagreement reveals the Democratic Party’s strategic dilemma. Progressives believe they should insist on extending health insurance subsidies and oppose any compromise; moderates argue that ending the shutdown is more urgent and that they can negotiate for healthcare policies later. Ultimately, the pragmatic approach of moderates prevailed, but these divisions could re-emerge during the House vote.

Although Johnson stated Monday that he expects enough votes to pass the bill, approval in the House is not guaranteed. Democratic leaders oppose any agreement that does not include an extension of expiring Obamacare subsidies, which the bill does not contain. Conservative Republicans prefer a bill that funds the entire government through September next year.

A complex factor is whether Kentucky Republican Senator Rand Paul will use procedural tactics to delay the Senate vote over a clause restricting the sale of alcohol-based cannabis products. Known for his principled stance and willingness to delay legislation, if Paul chooses to obstruct, it could postpone the final Senate vote by several days.

However, the market clearly believes these obstacles are insufficient to prevent the bill’s eventual passage. The strong rebound in U.S. stocks demonstrates investor confidence in Trump’s statement, believing the shutdown will end this week. Flight delays and food aid disruptions may persist until the government fully reopens, but Republicans celebrated a victory on Monday. Johnson told reporters that the 41-day “nightmare” is finally coming to an end.