The US Markets initially rallied on Friday 29th Sept after PCE data beat expectations, but later erased most of their gains due to concerns about the government shutdown
Investors were worried about a potential government shutdown and its consequences post 12:01 a.m. ET Sunday 1st Oct, if funding bills are not approved.
The Shutdown drama ended just before the midnight deadline, as both houses of Congress approved a short-term funding bill for 45 days.
According to the sources, the bill maintains current spending levels did not include additional aid for Ukraine, which disappointed President Biden.
Some hard-right House Republicans opposed more aid for Ukraine, but Senate Majority Leader Chuck Schumer expressed confidence in passing further assistance.
The House voted 335-91 to fund the government through Nov. 17, with more Democrats than Republicans supporting it.
The US markets are likely to react positively to the news, as Moody's warning about a potential US government shutdown harming the country's credit rating is now averted.