A government shutdown now seems unlikely. That's giving the stock market a much-needed boost.

• The US stock market rallied on Friday after days of pain brought on by Trump's trade war.
• Markets cheered Senator Chuck Schumer's support for a GOP spending bill.
• It signals a government shutdown will likely be averted, delivering investors sorely needed good news.

After days of pain brought on by President Donald Trump's trade war, markets gots some relief in Friday's session as developments in Washington, DC, indicate the government will avoid a shutdown.

Major stock averages rose sharply on the unexpected news that Senate Minority Leader Chuck Schumer will support the six-month stopgap bill from Republicans. The benchmark S&P 500 gained nearly 1% Friday morning, clawing back some of the week's losses.

The Nasdaq jumped more than 2% around mid-day on Friday, and the Dow Jones industrial average was up more than 500 points.

Here's where the market stood around 11:30 a.m. ET Friday:

• S&P 500: 5,620.15, up 1.8%
• Dow Jones industrial average: 41,392.92, up 1.4% (580 points)
• Nasdaq Composite: 17,682.80, up 2.2%

Though Schumer pledged to oppose the bill earlier in the week, signaling the Democrats would opt for a shutdown, he ultimately conceded that his party would wield no control in such a scenario.

"The total off-ramp of a shutdown, how you stop a shutdown, is totally determined by the Republican House and Senate, and that is totally determined because they've shown complete blind obeisance [to] Trump, DOGE, etc. They could keep us in a shutdown for months and months and months," he told reporters.

While the move has riled up anger among his fellow Democrats who were ready to stand against the spending bill, investors cheered Schumer's about-face as they removed a layer of uncertainty in what's already been a trying week for markets.

The exuberance was enough for markets to sidestep fresh signs of consumer weakness. Friday's consumer sentiment report was the lowest reading since 2022, with US consumers dealing with tariff uncertainty and inflation fears.

The week saw a barrage of tariff news that crushed investor confidence and sent volatility soaring. The S&P 500 ended Thursday's session in a correction, down 10% from its February 19 high.

At the same time, gold reached a record high of $3,000 an ounce on Friday, while Treasury yields have dropped in a flight to safety by investors.

Even with markets in retreat, the Trump White House been unfazed so far. On Thursday, Treasury Secretary Scott Bessent signaled that the administration isn't worried about a "little bit of volatility," and the focus is on the broader economy.