Stocks rise, dollar falls with labor market, US government reopening, tech valuations in focus

Wall Street had a muted start to Tuesday's session but gathered steam as the day wore on.

MSCI's global equities index was advancing on Tuesday as investors looked forward to the U.S. government shutdown ending but worried about rich technology sector valuations, while the dollar dipped on concerns about U.S. labor market weakness.

The U.S. Senate passed a deal on Monday that would restore federal funding after the record-long shutdown, which has disrupted food benefits for millions, left hundreds of thousands of federal workers unpaid, snarled air traffic, and delayed the release of government economic data.

The deal still needs approval in the House of Representatives, where Speaker Mike Johnson has said he wants a vote as soon as Wednesday, before being sent to U.S. President Donald Trump to sign into law.

After Monday's sharp rally, Wall Street had a muted start to Tuesday's session but gathered steam as the day wore on. The heavyweight Roundhill Magnificent Seven ETF was lower as investors stepped back from companies that have benefited from interest in AI technology. Nvidia was the biggest drag after Japan's SoftBank Group said it had sold its entire stake in the AI chip leader in October.

"In the morning, there was negative sentiment around either jobs or the SoftBank sale," said Chris Zaccarelli, chief investment officer of Northlight Asset Management, Charlotte, North Carolina. However, he noted that the market regained ground as investors bet that the economy was still solid.

"People are going in and buying the dip because if we don't go into a recession, then this bull market's going to continue," he said.

As of 2:46 p.m. EST on Wall Street, the Dow Jones Industrial Average rose 543.14 points, or 1.15%, to 47,911.77. The S&P 500 advanced 17.19 points, or 0.25%, to 6,849.62 and the Nasdaq Composite fell 47.67 points, or 0.20%, to 23,479.50.

MSCI's gauge of stocks across the globe rose 4.51 points, or 0.45%, to 1,009.48.

Earlier, the pan-European STOXX 600 index closed up 1.28%, while Europe's broad FTSEurofirst 300 index finished up 1.31%.

The U.S. Treasury market was closed for Veterans Day.

In currencies, the U.S. dollar weakened against the euro and yen on concerns about a deteriorating U.S. labor market after an ADP Research report showed private employers shed an average of 11,250 jobs a week in the four weeks ended October 25.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.24% to 99.40, with the euro up 0.29% at $1.159.

Against the Japanese yen, the dollar weakened 0.05% to 154.07.

In energy markets, oil prices rose due to the impact of the latest U.S. sanctions on Russian oil, although oversupply concerns limited gains.

U.S. crude settled up 1.5%, or 91 cents, at $61.04 a barrel while Brent settled at $65.16 per barrel, up 1.72% or $1.10 on the day.

In precious metals, gold prices rose slightly after hitting a near three-week high, bolstered by expectations the U.S. government would reopen and resume releases of economic data that could potentially set the stage for the Federal Reserve to trim interest rates next month.

Spot gold rose 0.14% to $4,121.60 an ounce. U.S. gold futures was flat to $4,111.60 an ounce.