After the 15th government shutdown, the US stock market will definitely offer a big gift! The S&P 500 is expected to reach 7000 points.

Notice that the US stock market has come a long way this year, overcoming multiple obstacles, and now faces the longest government shutdown in history. Since the government shutdown on October 1st, the S&P 500 index has risen by 0.6%. Following the seeming imminent end of the government shutdown in a few days, the index rose sharply on Monday. Now, based on historical experience, this benchmark index is expected to continue rising before the holiday season. Data compiled by CFRA Chief Investment Strategist Sam Stovall shows that in the one month following the end of the previous 15 government shutdowns, the S&P 500 index has risen on average by 2.3%. Such gains could bring this benchmark index of the US stock market close to 7000 points by mid-December. The latest stalemate in the current government shutdown could possibly end as early as this Wednesday (November 12th) when Senate Democrats have agreed to vote on an agreement still needing approval from the House. Investors welcomed the easing of tensions, speculating that the widespread damage to the US economy and corporate profits has been avoided. Now, investors can focus back on the path of monetary policy - the Fed is expected to cut interest rates for the third consecutive month next month - and the impact of tariffs on inflation. US stock market rises during government shutdown Chief Investment Officer and Chief Market Strategist at Truist Advisory Services Inc. Keith Lerner said, "We can continue to work on this front, which is somewhat reassuring, but soon the market's focus will shift back to discussions of technology and the largest sector in the market." He expects investor attention to now turn to Nvidia's earnings report on November 19th. During the five-week government shutdown, the stock market did not remain stable. Following President Trump's escalation of trade tensions with China, the S&P 500 index plummeted by 2.4% in the week ending on October 10th. Last week, as artificial intelligence trading began to appear somewhat bubbly, the index fell by 1.6%. However, during this period, the market rose by over 4% in three weeks due to better-than-expected corporate earnings. According to CFRA's data, the 2.2% gain of the index since the start of the government shutdown has exceeded the average performance of the stock market prior to the shutdown in 1981. Stovall believes that following last week's market pullback, further correction will be "deferred" following the end of the government shutdown. He said, "Historical experience indicates that the stock market rises a month after the end of a government shutdown." Strategists believe that with government employees returning to work and the regular release of economic data reports, some uncertainty in the market will vanish, leading to further market growth. During this time without economic data, the stock market barely managed to rise. In particular, some of the market's top performing stocks experienced declines, making it tempting for investors to buy on dips. It is worth noting that the combined weight of the seven tech giants in the S&P 500 index is about a quarter of the total index. President and Co-Founder of 22V Research LLC Dennis DeBusschere said, "Taking advantage of the recent dip in concept stocks related to artificial intelligence could be worth considering as lingering risks from the government shutdown may have passed." He suggested that investors consider buying AI-related stocks such as Nvidia and Constellation Energy while shorting a basket of non-AI stocks. DeBusschere stated that the first group of stocks would greatly boost market sentiment as policy uncertainty "begins to once again exert pressure on asset prices." Investors believe that with the end of the government shutdown, other areas of the market will also see a boost, including companies with contracts with the US government, such as CACI International and Palantir. Nathan Mayer, Joint Chief Investment Strategist at Manulife Investment Management, said that with the end of the government shutdown, investors can reassess economic data, but "we need to catch up with the release of data so that we can have a clearer understanding of the economic situation." Joint Chief Investment Strategist at Nally Vada Investment Management, Matt Miskeen, said, "The idea of increasing fiscal stimulus is causing investors to reconsider depreciation trades, which is causing recent stock valuations to revert back down." The possible end to the government shutdown is not entirely favorable for the stock market. Particularly due to the lack of official economic data on inflation and the labor market, investors may overlook the threats to the Fed's responsibilities in terms of employment and price stability. Lerner of Truist Corporation stated, "This is a two-way risk." He added that some economic data might surprise the market. "If some economic data, especially employment data, diverges greatly from the data they have been using, it could be a good thing, or it could be a bad thing." The compromise proposal passed by the Senate does not extend the subsidies under the Affordable Care Act, which has been a point of contention between Democrats and Republicans. This has caused insurance companies participating in government programs, such as Centene Corporation and Molina Healthcare, to see a significant decline in their stock prices on Monday. It is expected that both sides will discuss extending funds expiring at the end of this year, but there is currently no guarantee. The stock market also faces other multiple unfavorable factors, including overvaluation, concerns about the health of US consumers, and the challenges faced by specific industries such as healthcare companies. Despite this, many Wall Street strategists believe that with the clarity of government spending and the marginal boost to market sentiment, the market will begin to rise now. CFRA's Stovall said, "This brings some comfort to investors."