Global Stocks Rally Higher on Potential End to U.S. Government Shutdown

Canadian and U.S. stocks rallied higher on Monday, November 10 after the U.S. Senate took steps toward ending a now 40-day budget impasse—the longest government shutdown in history. Not only has the shutdown resulted in thousands of federal workers going unpaid or being temporarily laid off, but it has also delayed food aid and wreaked havoc on air travel.

What’s Going on with the Government Shutdown?

For investors, the government shutdown also means that important economic data were held back. This includes key economic data such as the Consumer Price Index, monthly U.S. jobs report, consumer sentiment, retail sales, and housing starts. Without all of this information, the Federal Reserve has been essentially flying blind when it comes to making decisions about interest rates.

A newly revised bill was released late Sunday, November 9, advancing to a key Senate procedural vote, after eight Democrats broke ranks and joined with Republicans to reach the 60-vote threshold needed to advance the measure. The bill unlocks enough funds to run the government until January 30, 2026.

It is anticipated that the House will vote for the bill on November 13, with the government set to reopen on November 14.

However, some hurdles need to be cleared first. The package must be approved by the House of Representatives and then sent to President Donald Trump for his signature.

How Has the Stock Market Responded?

The U.S. government shutdown began on October 1, 2025. From October 1 through November 7, the red-hot S&P 500 gained just 0.6%. Following news of the potential end of the government shutdown, the S&P 500 rallied approximately 1.5%. Over the same time period, the Nasdaq lost 1.5% of its value, before rebounding and closing up 2.3% on November 10.

The Toronto Stock Exchange (TSX), meanwhile, fell 0.4% during from October 1 through November 7 before ending sharply higher (+1.35%) on November 10 at 30,316. The TSX needs to climb just 1.6% to top its previous all-time record high of 30,808.1 reached on October 15.

With the U.S. government shutdown potentially coming to an end, investors can turn their attention back to third-quarter corporate earnings season. And, for the most part, results have been fairly positive.

So far, 91% of S&P 500 companies have reported results; of those, 82% have reported a positive earnings per share surprise and 77% of S&P 500 companies have reported a positive revenue surprise.

On the earnings front, the blended (year-over-year) earnings growth rate for the S&P 500 is 13.1%. If 13.1% is the final growth rate for the quarter, it will mark the fourth consecutive quarter of double-digit earnings growth for the index.

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