The U.S. Senate passed a bipartisan deal that would clear the way to reopen the government through January 30 after weeks of political stalemate that left nearly 700,000 federal employees without pay and disrupted essential services throughout the country. The decision, which now goes to the House, ignited a modest market rally as investors bet on a revival of spending across key federal agencies, such as defense and infrastructure, after months of paralysis.
The deal temporarily halts plans to downsize the federal workforce and restores agency funding, allowing the government to resume, adding roughly $1.8 trillion a year to its debt. While the fix is short-term, it offers much-needed relief for sectors tied to federal contracts and procurement pipelines. Nonetheless, investors remain cautious.
