Finance

Wall Street Rebounds: How the Dow Jones and Other Indexes Reacted to Government Shutdown News

U.S. stocks rose Monday, led by the Dow, on hopes of a government shutdown resolution, rebounding from recent losses.

byAndres Castro

November 10, 2025, 7:33 PM

A close-up of a black Wall Street street sign attached to a pole, with a marble building facade blurred.

The iconic Wall Street sign in New York's financial district. By MDL.

Executive Summary

Major U.S. stock indexes gained on Monday, driven by the prospect of a resolution to a potential government shutdown.

The Dow Jones Industrial Average climbed nearly 400 points, or 0.8%, reversing the previous week’s steepest decline since April.

Despite the broader market rally, some individual S&P 500 stocks notably declined in response to the evolving government funding deal.

The Story So Far

U.S. stock indexes had recently experienced their steepest weekly decline since April, largely due to investor apprehension regarding high market valuations. The current market rebound is primarily driven by the prospect of a resolution to a potential government shutdown, which is providing a catalyst for renewed buying activity.

Why This Matters

The prospect of averting a government shutdown spurred a significant rally in major U.S. stock indexes, reversing last week’s steep declines that were largely attributed to fears over high valuations. This market rebound suggests that resolving political uncertainty can provide a strong catalyst for investor confidence, though the mixed performance of individual stocks indicates a nuanced reaction to the specific details of the pending funding agreement.

Who Thinks What?

Major U.S. stock indexes and Wall Street responded positively, registering gains due to the prospect of a resolution to a potential government shutdown.

Some individual S&P 500 stocks notably declined in response to the evolving government funding deal.

Major U.S. stock indexes registered gains on Monday as Wall Street responded to the prospect of a resolution to a potential government shutdown. The market’s positive sentiment followed a challenging period, with the Dow Jones Industrial Average leading the advance.

The Dow Jones Industrial Average climbed nearly 400 points, or 0.8%, with the Nasdaq and S&P 500 also seeing lifts. This rebound comes after indexes experienced their steepest weekly decline since April, a downturn largely attributed to fears over high valuations.

Despite the broader market rally, reports indicated that some individual S&P 500 stocks notably declined in response to the evolving government funding deal.

Market Context

Monday’s trading session marked a shift from the previous week’s performance, where investor apprehension regarding market valuations contributed to significant losses across major indices. The anticipated conclusion of government funding uncertainty appeared to provide a catalyst for renewed buying activity in the overall market.

The day’s trading reflected a nuanced market reaction to the pending government funding agreement, with overall indices showing strength even as specific stocks faced downward pressure.