Dow Jones futures rose after positive news from the US Senate, which is moving to end the government shutdown. Futures for Dow Jones increased by 0.18%, while the S&P 500 and Nasdaq 100 gained 0.70% and 1.24%, respectively, during European trading hours. These gains are partly due to reduced trade tensions, as China has lifted its ban on approving exports of dual-use items to the US. This shift alleviates worries about high valuations in artificial intelligence, which had previously caused a dip in tech stocks on Wall Street.

US Senate Passes Funding Bill

The US Senate passed a funding bill with a vote of 60-40, aimed at ending the shutdown and extending subsidies for the Affordable Care Act. This bill still needs approval from the House of Representatives and the signature of President Donald Trump. China’s lifted export restrictions will stay in effect until November 27, 2026. In corporate news, Nvidia’s CEO is pushing for more chip production, and Pfizer has agreed to acquire Metsera for up to $10 billion. The Dow Jones Industrial Average includes 30 major US stocks, calculated by summing their prices and dividing by a specific factor. Key influences on the index include company performance, macroeconomic data, and Federal Reserve interest rates, with Dow Theory helping analyze market trends. Trading options for the DJIA consist of ETFs, futures, options, and mutual funds. With a positive outlook on November 10, 2025, there’s a chance for short-term bullish strategies. The potential end to the recent two-week shutdown is lowering market uncertainty, seen in the VIX volatility index decreasing below 17 this morning from a high of over 22 last week. This suggests that call options on broad market indices, like the SPDR S&P 500 ETF (SPY), could be a good investment if the funding bill passes smoothly in the House.

China Eases Trade Restrictions

The easing trade tensions with China provide support for certain sectors. China’s temporary lifting of export controls on key materials like gallium and germanium reverses a policy from July 2025, which caused prices for these important industrial inputs to rise over 20%. This change is expected to benefit US semiconductor and manufacturing companies, making them appealing for targeted call option strategies in the coming weeks. However, caution is necessary regarding tech stocks, especially those related to AI. The Nasdaq 100 fell sharply by 4.5% last week due to concerns about inflated valuations, similar to the tech correction in the third quarter of 2023. While Nasdaq futures are up today, this could just be a temporary boost. Traders might want to consider protective puts on overvalued stocks or use bear call spreads to guard against another potential drop. The Dow Jones Industrial Average, having less focus on high-growth tech, may present a more stable investment route. With industrials and materials benefiting from news from China, the Dow could do better than the Nasdaq in the near future. Following Dow Theory, a confirming upward move in the Dow Jones Transportation Average with higher volume would suggest a stronger overall trend. Upcoming economic data will be vital, as the Federal Reserve has held interest rates at 4.75% for the last two meetings. The latest Consumer Price Index (CPI) for October 2025 showed an increase of 3.0%, slightly above the Fed’s target. Any unexpected changes in inflation or employment data could quickly shift market sentiment. So, traders should stay flexible and ready for increased volatility around these key releases. Create your live VT Markets account and start trading now.

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