US markets are opening Tuesday with a mix of relief and caution as investors digest the potential end of the federal government shutdown, the longest in history. Monday's Senate approval of a funding bill helped spark a broad rally, with the S&P 500 climbing roughly 1.5%, the Nasdaq Composite rising 2.3%, and the Dow Jones Industrial Average gaining about 0.8%.
Despite the positive momentum, futures indicate a cautious tone. S&P and Nasdaq futures have edged lower amid lingering concerns about high valuations in the technology sector, particularly in AI and infrastructure-linked stocks. Nvidia rebounded sharply, while some smaller tech names reported weaker revenue guidance, highlighting the uneven landscape in the sector.
The end of the shutdown is expected to restore confidence and fiscal certainty, but investors remain alert to potential volatility as delayed economic data and corporate earnings resume. With U.S. Treasury markets closed for Veterans Day, liquidity may be thinner than usual, adding to the potential for sharper price swings.
Today, market watchers will focus on whether the House of Representatives approves the Senate bill, any new guidance from major tech firms, and the resumption of key economic indicators. Interest rate policy remains in focus, with speculation about potential Federal Reserve moves later in the year.
Expectations for today's session suggest a modest opening gain, led by technology, but upside could be limited if earnings or economic data disappoint. The market may experience a relief-driven bounce that could be short-lived unless supported by positive economic signals and strong corporate results. Investors are advised to remain cautious on high-growth and AI-related names while monitoring macroeconomic and policy developments closely.
