Global markets surged Monday following the US Senate’s breakthrough vote Sunday night to end what has become the longest government shutdown in American history. The bipartisan deal sparked a relief rally across equities, with investors anticipating a return to normal government operations and the resumption of critical economic data releases.
Risk-On Sentiment Sweeps Global Markets
US stock futures jumped in pre-market trading, with S&P 500 futures climbing 0.7% and tech-heavy Nasdaq 100 futures rising 1.3%. European markets followed suit, with Stoxx Europe 600 futures gaining 1.2% ahead of the opening bell.
“It’s a relief rally irrespective of geography,” said Geoffrey Yu, senior strategist at BNY, capturing the global nature of the positive sentiment.
The rally extended across Asian markets, where trading had already concluded for the day. South Korea’s Kospi index led gains with a 3% surge, while Hong Kong’s Hang Seng climbed 1.5%. Japan’s tech-focused Nikkei 225 closed 1.3% higher, with the broader Topix index adding 0.6%.
The US Senate Deal and What Comes Next
Eight Democratic senators broke ranks to support a Republican-led compromise that would reopen federal agencies and fund the government through the end of January. The deal represents a significant breakthrough after months of partisan gridlock that began when the shutdown started on October 1.
Under the agreement, federal workers who were furloughed during the shutdown would be guaranteed back pay, and layoffs initiated by the White House would be reversed. Democrats made a key concession on healthcare tax credits—a major sticking point that had prevented earlier compromise.
However, the deal still faces hurdles. The Senate must debate and formally pass the legislation before sending it to the Republican-controlled House of Representatives for approval. While momentum appears strong, the process could still encounter obstacles.
Bitcoin and Gold Catch the Relief Wave
The risk-on environment lifted both traditional safe havens and digital assets. Gold prices rose 1.9% to $4,075 per troy ounce, while bitcoin rallied 1.6% to $106,379.
Richard Yetsenga, chief economist at ANZ, noted that the shutdown had contributed to falling bond yields and rising gold prices as investors sought safety. “If the shutdown’s over, I would expect a reversion of some of those shifts,” he said, suggesting that once government operations normalise, concerns over US fiscal sustainability would likely return to the forefront.
US Treasury yields reflected this shift in sentiment. The 10-year Treasury yield rose 0.04 percentage points to 4.13% on Monday. Bond yields move inversely to prices, meaning the increase indicates investors were selling bonds—typically a sign of improving risk appetite.
Beyond Big Tech: Broader Economy Needs Government Functioning
While artificial intelligence spending has helped prop up US growth throughout 2025, analysts emphasised that the wider economy has suffered from the prolonged shutdown.
“The non-tech part of the market should benefit more from the end of the shutdown,” said Tai Hui, chief Asia market strategist at JPMorgan Asset Management. “The rest of the economy needs the government to get back to work.”
The shutdown halted the release of crucial economic data, particularly labour market statistics that had been showing signs of cooling before the government closure. This data blackout has left investors and policymakers operating partially blind regarding the true state of the US economy.
“Let’s just hope there’s no sting in the tail when data comes through,” cautioned BNY’s Yu, highlighting concerns that delayed economic reports could reveal weaker conditions than markets currently expect.
What This Means for Crypto Markets
For cryptocurrency markets, the government reopening could have mixed implications. On one hand, reduced political uncertainty and improved economic visibility typically support risk assets like Bitcoin. The 1.6% rally Monday suggests traders are pricing in a more stable environment.
On the other hand, the return of fiscal sustainability concerns—as Yetsenga predicted—could pressure risk assets if bond yields continue climbing. Higher Treasury yields make bonds more attractive relative to non-yielding assets like Bitcoin and can strengthen the dollar, which often moves inversely to crypto prices.
The resumption of economic data releases will be particularly important for crypto traders. Labour market weakness could prompt the Federal Reserve to cut interest rates sooner, which would likely benefit Bitcoin and other digital assets. Conversely, signs of economic resilience could keep rates elevated for longer.
This story will be updated as the Senate vote progresses and the House considers the legislation.
