US stocks rise as the shutdown is expected to end, historical data shows a potential holiday rebound.

Since the US government shutdown on October 1, the S&P 500 index has risen by 0.6% in the past 40 days. After it became clear on Monday that the shutdown would end in a few days, the index rebounded even more significantly. Now, based on historical experience, the benchmark index is expected to experience a rebound in the holiday season. Data compiled by CFRA's chief market strategist Sam Stovall shows that in the month following the end of the previous 15 shutdowns, the S&P 500 index has on average risen by 2.3%. This level of increase would bring the benchmark index of US stocks to just below 7,000 points by mid-December. Strategists believe that as federal employees return to work and regular economic data reports resume, the stock market will see further gains from its current level. Stovall recommends investors to consider making a trade: going long on stocks that use AI technology while simultaneously shorting a basket of stocks that do not use AI.