- Dow surges 0.6% as lawmakers advance funding bill
- S&P 500 climbs 0.9%, exiting 10% correction zone
- Schumer pledges support, reducing shutdown risks before Friday deadline
U.S. equities staged a relief rally Thursday after Senate Democratic Leader Chuck Schumer signaled support for a House Republican proposal to fund federal operations through April. The Dow Jones Industrial Average gained 230 points, erasing a portion of its 1% loss from the prior session. Analysts attribute the rebound to reduced political uncertainty, though markets remain volatile amid ongoing trade disputes.
The S&P 500 rose 0.9%, climbing back from a 10% decline since its February 2025 peak – its first technical correction in 18 months. Technology stocks led the recovery, with the Nasdaq Composite jumping 1.3% as investors rotated into growth sectors. Market strategists note that corrections lasting fewer than 60 days historically precede average 12-month gains of 15%, suggesting potential upside for patient investors.
President Trump reiterated his commitment to tariffs during meetings with Irish officials, dampening hopes for a near-term trade resolution. Automotive and semiconductor stocks underperformed amid concerns about April's scheduled tariff increases. A regional case study of Ohio manufacturers revealed 14% reduced export orders since March, highlighting tariff impacts on industrial states.
Historical data shows the S&P 500 typically gains 2.3% in the month following government funding resolutions. However, analysts caution that prolonged trade tensions could offset these benefits. Unique industry insights reveal increased hedging activity in agricultural futures and a 17% quarterly rise in cybersecurity stock investments as firms prepare for economic turbulence.