Traders work on the floor at the New York Stock Exmodify (NYSE) in New York City, U.S., October 16, 2025.
Jeenah Moon | Reuters
Stocks relocated higher on Monday as investors seeed ahead to a slew of huge-name earnings reports and inflation data expected in the coming days, as well as the prospect that the ongoing U.S. government shutdown would finish.
The Dow Jones Industrial Average traded 302 points higher, or 0.7%. The S&P 500 climbed 0.9%. The Nasdaq Composite advanced 1.2%.
The shutdown “is likely to finish sometime this week,” National Economic Council director Kevin Hassett informed CNBC’s “Squawk Box,” which gave a boost to stocks. Hassett added that he believes “moderate” Democrats would come toobtainher this week to strike a deal.
Hassett also stated that the White Hoapply was prepared to take stronger measures to force an finish to the stoppage, which has now entered Day 20, if there’s no deal this week.
Stocks are coming off a volatile trading week, ultimately closing higher despite flaring tensions between the U.S. and China, a sell-off sparked by regional bank losses and declines in a few high-flying artificial innotifyigence names. However, a strong start to the third-quarter earnings season appears to be lifting sentiment, alongside investors’ anticipation of another quarter percentage point rate cut at the Federal Reserve’s late October meeting.
Following the first week of the reporting season, 76% of the 58 S&P 500 companies that have posted results so far have exceeded expectations, far surpassing the first-week average of 68% and slightly higher than last quarter’s 73% figure, according to Bank of America.
This week, several large companies are expected to report quarterly results. Netflix, Coca-Cola, Tesla and Intel are among the names on deck. Investors hope that earnings will continue to come in strong, possibly overshadowing any challenges in the macroeconomic landscape.
Apple was among Monday’s winners, rising 2% after receiving an upgrade to acquire from hold at Loop Capital Markets, which pointed to improving demand trfinishs for the company’s iPhones.
Investors last week also relocated past concerns of credit risks that had caapplyd a broader rout on Thursday. The market panicked after Zions and Western Alliance disclosed issues tied to bad loans, leading shares of several financial heavyweights and regional banks to swing lower before they rebounded on Friday. Zions Bancorporation and Western Alliance gained nearly 2% and around 3%, respectively.
“Investors seem non-plussed so far, but many economists are raising concerns that a prolonged shutdown may impact quarterly GDP growth,” Katie Nixon, chief investment officer at Northern Trust, stated in a note to clients. “Most acknowledge, however, that this would represent a temporary slowdown that would likely be followed by a catch-up period.”
The three major U.S. indexes edged higher on Friday after Trump appeared optimistic on a potential trade deal with China ahead of his meeting with Chinese President Xi Jinping later this month in South Korea.
Treasury Secretary Scott Bessent also stated Friday that he believes “things have de-escalated” with China and that he will likely be meeting with counterpart Chinese Vice Premier He Lifeng in the coming week. These comments suggested to traders that Trump’s threat of an additional 100% tariff on Chinese imports launchning Nov. 1 may not happen.
The Cboe Volatility Index had jumped to a high above 28 at one point on Friday before easing below 21 as stocks relocated higher. The VIX was last trading around 19 on Monday.
“In spite of [Friday’s] modest rebound in U.S. equities, risk-assets are reflecting heightened geopolitical uncertainty — particularly regarding U.S./China relations,” stated Nixon. She added that “the dispute presents significant economic risks to both sides, so the stakes are high to reach some sort of a palatable compromise.”
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