U.S. Government Shutdown Nears an End as Senate Advances Stopgap Bill

The political deadlock in Washington finally shows signs of easing. After weeks of stalemate, the U.S. Senate passed a key procedural vote late Sunday night to advance a stopgap spending bill that would fund the government through January 30, 2026. This development suggests the prolonged “shutdown crisis” could be resolved within days.

The breakthrough came through bipartisan compromise: Republicans agreed to hold a December vote on extending Affordable Care Act (ACA) subsidies, in exchange for Democrats conceding on several budgetary items. The Senate is expected to resume deliberations at 11 a.m. Monday, with a final vote likely by midweek if cooperation continues smoothly.

House Speaker Mike Johnson said he would give lawmakers 36 hours notice to return to Capitol Hill for a vote once the Senate passes the bill. Media outlets project that the House could vote as early as Wednesday.

Market Reaction and Liquidity Outlook

Markets broadly expect the government shutdown to end by the weekend, fueling a gradual recovery in Wall Street sentiment. Analysts note that once fiscal operations resume, around $1 trillion from the Treasury General Account (TGA) could begin flowing back into the economy — unleashing a wave of liquidity injection.

Open interest in S&P 500 futures increased by roughly $21 billion, signaling renewed bullish positioning rather than mere short covering. Institutional investors net long exposure remains near historical lows, meaning that a confirmed upward breakout could trigger a massive short squeeze — potentially setting the stage for a year-end equity rally.

Trade Relations Show Positive Momentum

Meanwhile, trade negotiations brought further optimism. Reports indicate that the U.S. and Switzerland are close to reaching a tariff-reduction agreement, expected to cut the average tariff rate on Swiss goods from 39% to 15%.

President Donald Trump also mentioned that the U.S. is finalizing a trade deal with India, suggesting a broader softening in U.S. trade policy that could lift corporate sentiment and stimulate global capital flows.

Policy Turning Point Ahead

Overall, the U.S. government shutdown is entering its final phase, with fiscal liquidity expected to return swiftly. Combined with improving trade relations and recovering investor confidence, markets appear to be at a policy inflection point.

If the stopgap funding bill passes and receives President Trumps signature, it would not only avert the immediate shutdown threat but could also serve as a catalyst for a year-end rebound in U.S. equities.

In essence, this dual political and economic showdown may conclude in a “compromise for stability,” injecting renewed confidence into global markets.

Gold Technical Analysis

Gold has reached the upper boundary of its trading range near $4,000/oz, with potential to test $4,150. Traders are advised to buy on dips or consider momentum long entries upon a confirmed breakout above $4,150, with stop-losses set 10–20 dollars below.

• Resistance: $4,150/oz

• Support: $4,100/oz

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