Stock futures improved on Monday morning, following a crucial move by Senate lawmakers late on Sunday evening toward a possible agreement to address the historic U.S. government shutdown.
The S&P 500 futures increased 0.76 percent, and futures favored to the Dow Jones Industrial Average surged 112 points, or 0.24 percent. Nasdaq-100 futures were trading 1.29 percent higher.
Investors still keep a watch on the negotiations of lawmakers to enact a federal funding bill that would end a shutdown.
A bipartisan agreement under discussion in the Senate would reopen the government through January and reopen some of the recent mass federal layoffs.
People familiar with the matter reported to CNBC that there were enough Democratic senators who had agreed to vote on the deal to pass a minimum of a 60-vote threshold.
The procedural step permitting other votes on the agreement to be conducted on Monday passed by a minimum of 60 yes votes, with eight Democratic caucus senators siding with the party leadership to approve the deal.
The agreement under negotiation also covers future safeguards of government employees. The possible agreement would not feature an extension of ACA credits, which is a major concern among most democrats, although it would require a vote on the subsidies in December.
According to a University of Michigan survey indicated on Friday that the concerns of the shutdown have pushed consumer sentiment to its lowest point in more than three years in just above its worst-ever.
As a result of the shutdown, federal agencies are ceasing to issue most of their major economic reports, such as the Consumer Price Index and Producer Price Index, which had been set to be released this week.
The shutdown has contributed to stock market angst that is coming out of a bad week due to increasing worries about excessively high valuations of stocks based on artificial intelligence.
The Nasdaq Composite declined by 3 percent and was its worst week since the tariff-fueled selloff in April.
The S&P 500 dropped 1.6 percent and the Dow Jones Industrial Average fell 1.2 percent throughout the week.
Investors will have an opportunity to witness a few earnings reports this week, such as quarterly reports of Walt Disney on Thursday.
In a note to clients, Wedbush analyst Daniel Ives said, “A risk-off rally on tech AI stalwart names such as Microsoft, Palantir, Nvidia among others has put some near-term concern in this tech bull market.”
