US Stocks Rise as Government Reopens After 43-Day Shutdown

The United States financial markets breathed a collective sigh of relief on Thursday, November 13, 2025, as Congress passed a bill to fully reopen the federal government, ending a record 43-day closure. This political breakthrough immediately translated into positive momentum across key financial indicators, with US stock futures ticking upward in pre-market trading. The resolution of the longest government shutdown in US history removed a significant cloud of uncertainty that had been hanging over the economy, allowing investors to refocus on fundamental economic activity rather than political gridlock.

The S&P 500, a key benchmark for US equity performance, was set to open approximately 0.1% higher following the announcement. This upward movement reflects renewed investor confidence in the stability of government operations and the broader economic outlook. The market’s positive response underscores how political stability serves as a crucial foundation for financial market performance, with the end of the shutdown eliminating concerns about disrupted government services, delayed economic data releases, and potential impacts on federal contractors and employees.

Perhaps the most immediate and significant market reaction occurred in the bond market, where the sudden return to normal government operations pushed the key interest rate for 10-year Treasuries up to 4.09%. This substantial move in Treasury yields represents one of the most direct financial consequences of the government reopening, signaling a rapid reassessment of economic prospects among bond investors. The yield on the 10-year Treasury note serves as a critical benchmark for everything from mortgage rates to corporate borrowing costs, making its movement particularly consequential for the broader economy.

The jump to 4.09% reflects several interconnected factors, including expectations of renewed economic activity as government functions resume, potential inflationary pressures from pent-up demand, and reduced demand for safe-haven assets now that political uncertainty has diminished. Bond market participants are essentially pricing in a more robust economic environment where the Federal Reserve may maintain tighter monetary policy for longer, given that a functioning government can continue implementing fiscal measures and economic support programs.

The rise in Treasury yields to 4.09% carries immediate practical implications for American families and businesses, as it means borrowing money may now become more expensive across multiple sectors of the economy. Higher yields on government debt typically translate into increased costs for consumer loans, including mortgages, auto loans, and credit card rates. For businesses, the elevated yield environment could mean higher financing costs for expansion projects, equipment purchases, and corporate debt refinancing.

This dynamic creates a complex balancing act for the economy: while the end of the government shutdown removes a significant drag on economic growth and consumer confidence, the resulting rise in borrowing costs could potentially temper some of that positive momentum. The movement in the 10-year Treasury yield suggests that financial markets are anticipating both stronger economic growth and potentially persistent inflation pressures, which would keep interest rates elevated compared to the pre-shutdown environment.

The market’s response to the government reopening demonstrates how quickly financial conditions can shift based on political developments. The record 43-day closure had created uncertainty that suppressed economic activity and investor sentiment, but the resolution has unleashed pent-up optimism that is now reflected in both equity gains and higher bond yields. As normal government operations resume, markets will be watching closely to see how this renewed stability translates into concrete economic data and whether the Federal Reserve responds to these developments with adjustments to monetary policy.