5:45 pm - March 24, 2026
The Dow Jones Industrial Average surged to a record high on Tuesday, driven by investor optimism that the US government shutdown could end within days. The blue-chip index gained 559 points, or 1.18%, closing at an all-time high of 47,927.96 as market participants welcomed progress on a funding measure that passed the Senate on Monday.
The broader S&P 500 rose 0.21% during the session, while the tech-heavy Nasdaq Composite declined 0.25%. The Senate approved a stopgap funding bill on Monday that now awaits House approval before heading to President Donald Trump for signature.
Government Shutdown Resolution Boosts Market Sentiment
According to Mohit Kumar, chief economist and strategist for Europe at Jefferies, the Senate’s passage of the funding measure suggests the government shutdown will likely conclude by week’s end. This development provided a significant confidence boost to investors who have been navigating uncertainty around federal operations and delayed economic data releases.
The potential end to the government shutdown carries important implications for market transparency and investor decision-making. Key economic data on employment and inflation that had been delayed due to the shutdown are expected to resume regular publication schedules, providing markets with critical information for assessing economic conditions.
Sector Rotation Favors Traditional Industries
Tuesday’s trading session witnessed notable investor rotation out of technology stocks and into other sectors including health care, energy, and consumer staples. This shift particularly benefited the Dow Jones Industrial Average, which has less exposure to technology and artificial intelligence companies compared to other major indices. Twenty-six of the 30 Dow components closed higher for the day.
Historical data suggests positive outcomes following previous government shutdowns. According to Sam Stovall, chief investment strategist at CFRA Research, the S&P 500 has gained an average of 2.7% in the month following the resolution of the last 15 government shutdowns dating back to 1981.
Tech Stocks Face Selling Pressure
Meanwhile, technology shares experienced headwinds during Tuesday’s session. Nvidia shares fell 2.96% after SoftBank disclosed that it had sold its entire stake in the semiconductor company. Additionally, CoreWeave, a cloud-computing company prominent in the artificial intelligence trade, plummeted 16.31% after issuing guidance that failed to meet investor expectations.
However, some market strategists remain optimistic about equity performance moving forward. José Torres, senior economist at Interactive Brokers, indicated that a finalized funding deal later this week is expected to drive stocks to stronger advances as economic uncertainty diminishes and holiday season prospects improve.
Broader Market Indicators Show Mixed Signals
The bond market remained closed on Tuesday in observance of Veterans Day, limiting fixed-income trading activity. CNN’s Fear and Greed index hovered in “fear” territory after trading in “extreme fear” last week, though some improvement in sentiment was evident.
In contrast to Tuesday’s decline, the Nasdaq surged 2.27% on Monday, posting its best single-day performance since May as investors bought technology stocks at lower valuations. Ulrike Hoffmann-Burchardi, global head of equities at UBS, noted that the Federal Reserve’s policy easing, robust corporate profits, and strong artificial intelligence spending should continue supporting the equity rally.
Market participants now await House approval of the Senate-passed funding measure, which could arrive before week’s end. The timing of final passage remains uncertain, though lawmakers have expressed urgency in reopening government operations and restoring regular economic data releases.
