Investors return to AI stocks: the Nasdaq index posted its best one-day gain since Ma

Shares of U.S. technology companies replaced last week's collapse with rapid growth on Monday, November 10: investors decided to return to risky assets, writes CNBC. The market reacted positively to the breakthrough achieved by Congress on the way to a deal that will end the record pause in the U.S. government.

- The Nasdaq Composite Technology Sector Index rose 2.27% to 23,527.17 points in Nov. 10 trading, partially recovering from its worst week since April. The index posted its best daily gain since Ma. 27, according to Dow Jones Market Data, Barron's noted. Among the top gainers were Nvidia shares, up 5.8%. Microsoft shares rose nearly 2%, breaking an eight-day decline that was the longest since 2011, CNBC noted.

- The Dow Jones Industrial Average blue-chip index rose 0.8% to 47,368.63 points on Monday.

- The S&P 500 broad market index added 1.54% to 6832.43 points. For him it is also the best day since Ma, notes Bloomberg.

- Bitcoin rose 1% to 105,701.

Investors rushed into risky assets - shares of the technology sector and bitcoin - due to the prospects of the U.S. government reopening, Bloomberg writes. The driving force behind the growth of stock indices were technology companies, which suffered the most in the previous days. Falling interest in protective assets led to weakening demand for U.S. government bonds, the agency notes.

The Senate held a procedural vote on the resolution, which garnered the minimum required 60 yes votes, with eight Democratic senators voting against the party line. This paves the way for a deal between Democrats and Republicans that would allow the U.S. government to reopen through January and cancel some of the massive layoffs at government agencies, CNBC noted. A final vote in the Senate is expected soon, after which the bill will have to pass the House of Representatives, which could happen this week.

"It may seem odd that the market was rallying in early October when the shutdown first began and is rising rapidly now that the government is set to reopen. But investors are breathing a sigh of relief," Paul Hickey, co-founder of Bespoke Investment Group, wrote, as quoted by Barron's.

Concerns about the shutdown have already lowered consumer sentiment to its lowest level in more than three years, a University of Michigan survey showed. Because of the government shutdown, agencies are no longer releasing a number of key macroeconomic reports, including consumer and manufacturing price indexes that were due out this week. Ending the shutdown will give investors access to economic data and provide a better understanding of the Federal Reserve's policy outlook, Bloomberg explains.

- The market's reaction seems logical, given that the restoration of US government funding relieves one of the pressures on economic growth and reduces uncertainty in the outlook, says Pepperstone chief strategist Michael Brown.

- "The end of the shutdown will not only improve investor sentiment, but also pave the way for the release of macro data that could provide more insight into the state of the U.S. labor market and the broader economy ahead of the next Fed meeting," City Index senior market analyst Fiona Cincotta told Bloomberg.

- "It's been a bumpy November for risk assets," Tim Holland, chief investment officer at Orion, told CNBC. He notes that the negative market sentiment is due to a combination of three factors: the shutdown, high stock prices and a possible bubble around artificial intelligence. "Last week's concerns were valid, but at least one of the three threats we can rule out, and that in itself is a big deal," Holland added. - "When you factor in the likelihood of a government reopening, the effect of the Big and Beautiful Bill, a 13% year-over-year increase in corporate earnings, and seasonality, we remain optimistic about both the economy and risk assets ahead of year-end."

This article was AI-translated and verified by a human editor