MPC Morning Call 10th November 2025 – Stocks saved from mid-session losses on Govt shutdown optimism

Overnight – Stocks saved from mid-session losses on Govt shutdown optimism   

Stocks finished largely on Friday, recovering deep mid-session losses as hopes that the government shutdown could be nearing end were boosted after Senate Minority Leader Chuck Schumer proposed a deal that could re-open the government.

Democratic leaders have proposed a deal to end the ongoing government shutdown, with Senate Minority Leader Chuck Schumer suggesting that the government could reopen rapidly if Republicans accept their compromise. The core of the Democrats’ plan revolves around a one-year extension of health insurance subsidies, which has been the key point of contention. While Republicans previously pushed for separating health care subsidies from the short-term funding bill, Schumer urged them to accept the current agreement, putting pressure on the GOP to end the impasse.

The extended shutdown is having a measurable impact on U.S. consumer confidence and the broader economy. In November, the University of Michigan’s consumer sentiment index dropped to its lowest level since June 2022, with increasing worries about inflation and job security due to government dysfunction. Reports from private firms signal a complicated labor picture: layoffs surged in October, but payroll data also showed a slight recovery in private sector hiring, while economists remain divided over whether the Federal Reserve will continue cutting interest rates to support the economy.

Corporate America also saw major headlines, including a landmark compensation plan at Tesla as shareholders approved a deal for Elon Musk that could pay him up to $1 trillion if ambitious targets are met. Meanwhile, Peloton and Affirm outperformed expectations in their earnings, but Take-Two faced setbacks due to delays in the much-anticipated GTA VI, demonstrating how ongoing economic uncertainty and market shifts continue to influence the performance of major

Corporate News & Earnings

• Airbnb 0.17% – –  shares gave up gains even after the vacation rental firm forecast upbeat quarterly revenue after posting higher third-quarter results, aided by strong bookings in markets such as Latin America and Asia Pacific.
• Affirm Holdings +11.61%– shares soared after the buy-now-pay-later provider reported first-quarter fiscal 2026 results that significantly exceeded expectations, and raised its full-year guidance.
• Take-Two Interactive Software -8.08% – stock fell after Rockstar Games, a subsidiary of the video game developer, announced a further delay in the release of Grand Theft Auto VI to November 2026 from May 2026, the second delay for the highly anticipated game.
• DraftKings +8.65% – stock rose despite the gaming company lowering its full-year sales outlook and reported mixed third-quarter results, amid concerns that prediction market services are eating into the sports betting business.
• Peloton Interactive +14.16% – stock gained after the fitness company beat quarterly revenue estimates, buoyed by early traction from its revamped product lineup and price hikes across hardware and subscriptions.