Global stock markets rose sharply on Monday as investors showed optimism amid reports that the US government shutdown could soon be resolved, after a breakthrough in the record 40-day standoff.Dow was trading up 115 points or 0.25%, reaching 47,103. Nasdaq also inched 1.95% or 448 points, to trade at 23,452 at 8:50 PM IST. S&P 500 also jumped 1% to 6,804. A group of Senate Democrats joined Republicans in a procedural vote on Sunday evening, clearing the path for a formal debate after a bipartisan deal was reached to fund government operations through January. “The more risk-on mood means it’s pretty much a sea of green on the boards,” Neil Wilson, UK Investor Strategist at Saxo told AFP. The reopening could bring much-needed clarity on US inflation and the soft labour market, both critical to the Federal Reserve’s plans for potential interest rate cuts next month. “If all goes well, some federal agencies could reopen as soon as Friday,” said David Morrison, senior analyst at Trade Nation. He noted that both investors and the Fed have been “flying blind since the beginning of October, with a near-complete absence of data.” Morrison added, “Fed Chair Jerome Powell has played down the prospect of another rate cut in December, as it is far from obvious that inflation has peaked.” Investor focus on Monday was dominated by the prospect of a government reopening, as concerns mounted over the impact on low-income households reliant on food benefits and potential disruptions to air travel ahead of Thanksgiving. “Shutdowns haven’t typically had a big bearing on the economy or on financial markets. But, this one… looked as though it might start to cause some trouble,” said analysts at Capital Economics. Optimism was further boosted by Pfizer’s reported $10 billion victory in the bidding war for biotech obesity specialist Metsera over the weekend. Wall Street opened higher following a week of losses sparked by worries that the AI investment boom had inflated tech valuations to unsustainable levels. European markets also climbed, mirroring gains in Asia. Tensions between the US and China eased further after Beijing announced a one-year suspension of “special port fees” on US vessels, coinciding with Washington’s pause on levies targeting Chinese ships. In currency and commodity markets, the dollar steadied against the euro and pound while rising against the yen. Oil prices gained slightly after last week’s decline amid concerns over supply and global demand uncertainties.