U.S. stocks traded mostly lower on Tuesday, as investors took a breather following a strong rally in technology names and growing optimism that Washington is close to ending the nation’s longest-ever government shutdown.

At 09:35 ET, the Dow Jones Industrial Average gained around 80 points (0.2%), while the S&P 500 slipped 10 points (0.2%) and the NASDAQ Composite dropped 102 points (0.4%).

Lawmakers Move to End the Shutdown

The U.S. Senate passed a spending bill late Monday to reopen the federal government, sending it to the House of Representatives for a vote after eight Democrats joined Republicans to break the deadlock.

The measure is expected to clear the House and head to President Donald Trump for final approval, officially ending the historic 41-day shutdown, which has disrupted key sectors and is likely to have weighed on fourth-quarter GDP.

“The shutdown resolution (even though the government won’t actually reopen for several more days) is clearly a positive, and many feel it gives a bright green light for the much-anticipated year-end rally to finally commence,” analysts at Vital Knowledge said in a note.

The news helped Wall Street extend its rebound on Monday, led by sharp gains in artificial intelligence heavyweights Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).

UBS Sees the S&P 500 Reaching 7,500 in 2026

With most of the third-quarter earnings season complete, investor attention is shifting toward 2026 growth forecasts.

UBS expects the S&P 500 to climb to 7,500 by the end of next year, up from the current level near 5,830, fueled by “around 14% earnings growth,” nearly half of which should come from technology stocks.

In a research note Monday, UBS strategists said the global economy “is poised to accelerate in 2026” as confidence improves and fiscal stimulus measures take hold.

Still, they cautioned that major economies will have to “navigate a soft patch, with tariffs still feeding through to prices and exports” in the near term.

UBS forecasts roughly 10% market returns in 2026, driven primarily by earnings growth rather than higher valuations.

Corporate Movers: CoreWeave, Paramount, Rocket Lab, TheRealReal

CoreWeave (NASDAQ:CRWV) fell after revealing a delay at a third-party data center partner, overshadowing otherwise strong quarterly results. The Nvidia-backed AI cloud firm has recently secured multibillion-dollar deals with OpenAI and Meta Platforms (NASDAQ:META) to expand its reach in the booming AI infrastructure market.

Paramount Skydance (NASDAQ:PSKY) rose after the entertainment group announced plans to cut an additional $1 billion in costs, adding to the $2 billion in savings outlined following its August merger.

Rocket Lab (NASDAQ:RKLB) gained after reporting a smaller-than-expected quarterly loss, while TheRealReal (NASDAQ:REAL) jumped 15% after raising its full-year revenue guidance and posting better-than-expected Q3 sales.

Oil Prices Extend Gains

Oil prices edged higher as traders reacted to progress in ending the shutdown, which could boost demand expectations.

Brent crude climbed 1.1% to $64.78 a barrel, while U.S. West Texas Intermediate (WTI) advanced 1.2% to $60.85 a barrel.

However, concerns about potential oversupply linger. OPEC+ recently agreed to raise production targets by 137,000 barrels per day for December, matching October and November levels, before pausing increases in early 2026.

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