U.S. stock futures showed a positive trend Sunday evening as a crucial bill aimed at ending the longest government shutdown in history progressed in the Senate.
The spending bill passed a key procedural step with support from seven Democratic senators and one independent alongside Republicans. This development was timely, especially as SNAP payments have faced interruptions, and Transportation Secretary Scott Duffy has issued warnings about potential air travel issues as Thanksgiving approaches.
Futures for major stock indices rose: the Dow Jones was up by 66 points (0.14%), S&P 500 futures increased by 0.68%, and Nasdaq futures jumped up 1.19%. Bond markets also saw action, with the yield on the 10-year Treasury rising slightly to 4.134%. The U.S. dollar gained modestly against both the euro and yen. Gold prices increased by 1.16% to reach $4,056.50 per ounce, while oil futures showed gains, with U.S. oil priced at $60.19 per barrel and Brent crude at $64.04.
This new bill aims to extend government funding through January 31. It also includes allocations for SNAP and Veterans Affairs until the end of the fiscal year next September. However, it does not provide an extension for Affordable Care Act (ACA) subsidies, which are set to expire soon. This has upset many Democrats, who viewed the subsidies as a key part of the negotiations.
Although there’s a promise that the Senate will vote on extending these subsidies by December, some Democrats are concerned it’s not enough. Rep. Richie Torres criticized the deal on X, stating it leaves millions of Americans at risk of soaring health care costs. Rep. Greg Casar echoed these worries, labeling the agreement a significant failure, particularly as many voters rely on these health benefits.
Interestingly, a recent analysis from the Kaiser Family Foundation (KFF) revealed that over half of ACA enrollees reside in Republican districts. This suggests that mishandling the subsidies could come back to haunt Republicans, especially as many voters may be impacted by rising health care costs.
Overall, tensions are high on Capitol Hill as negotiations continue. Both parties seem aware of the potential fallout as we head into the midterms, where health care will likely be a hot-button issue. For further details on ACA and the impact of potential subsidy changes, you can check the KFF analysis here.
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Affordable Care Act (ACA),Congress,government shutdown
