Dow jumps 400 points as rally accelerates Monday on the back of Apple: Live updates

Stocks moved higher on Monday, thanks to a rise in Apple shares, as investors looked ahead to a possible end to the ongoing U.S. government shutdown as well as a slew of big-name earnings reports and inflation data expected in the coming days.

The Dow Jones Industrial Average traded 401 points higher, or 0.9%. The S&P 500 climbed 1%. The Nasdaq Composite advanced 1.4%.

Apple led the market higher, rising 2% after receiving an upgrade to buy from hold at Loop Capital. The firm pointed to improving demand trends for the company’s iPhones, saying that “we are NOW at the front end of AAPL’s long-anticipated adoption cycle that suggests ongoing iPhone shipment expansion through CY2027.”

Also giving a boost to stocks, the government shutdown, which has now entered Day 20, “is likely to end sometime this week,” National Economic Council director Kevin Hassett told CNBC’s “Squawk Box” Monday. He added that he believes “moderate” Democrats would come together this week to strike a deal and that the White House was prepared to take stronger measures to force an end to the stoppage if there’s no deal this week.

Stocks are coming off a volatile trading week, ultimately closing higher despite flaring tensions between the U.S. and China, a sell-off sparked by regional bank losses and declines in a few high-flying artificial intelligence names. However, a strong start to the third-quarter earnings season appears to be lifting sentiment, alongside investors’ anticipation of another quarter percentage point rate cut at the Federal Reserve’s late October meeting.

Following the first week of the reporting season, 76% of the 58 S&P 500 companies that have posted results so far have exceeded earnings expectations, far surpassing the first-week average of 68% and slightly higher than last quarter’s 73% figure, according to Bank of America.

This week, several large companies are expected to report quarterly results. Netflix, Coca-Cola, Tesla and Intel are among the names on deck. Investors hope that earnings will continue to come in strong, possibly overshadowing any challenges in the macroeconomic landscape.

Investors continued to move past concerns of credit risks that had caused a broader rout on Thursday. The market panicked after Zions Bancorporation and Western Alliance disclosed issues tied to bad loans, leading shares of several financial heavyweights and regional banks to swing lower before they rebounded on Friday. Zions and Western Alliance saw gains in Monday’s session, moving nearly 2% and around 3% higher, respectively.

“Investors seem non-plussed so far, but many economists are raising concerns that a prolonged shutdown may impact quarterly GDP growth,” Katie Nixon, chief investment officer at Northern Trust, said in a note to clients. “Most acknowledge, however, that this would represent a temporary slowdown that would likely be followed by a catch-up period.”

The three major U.S. indexes edged up Friday after President Donald Trump appeared optimistic on a potential trade deal with China ahead of his meeting with Chinese President Xi Jinping later this month in South Korea.

Treasury Secretary Scott Bessent also said that day that he thinks “things have de-escalated” with China and that he will likely be meeting with counterpart Chinese Vice Premier He Lifeng in the coming week. These comments suggested to traders that Trump’s threat of an additional 100% tariff on Chinese imports beginning Nov. 1 may not happen.

The Cboe Volatility Index had jumped to a high above 28 at one point on Friday before easing below 21 as stocks moved higher. The VIX was last trading around 19 on Monday.

“In spite of [Friday’s] modest rebound in U.S. equities, risk-assets are reflecting heightened geopolitical uncertainty — particularly regarding U.S./China relations,” said Nixon. She added that “the dispute presents significant economic risks to both sides, so the stakes are high to reach some sort of a palatable compromise.”