Quick overview

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U.S. stocks closed higher on Monday, lifted by optimism that the longest government shutdown in U.S. history could soon end and by a sharp rebound in the technology sector.

All three major Wall Street indexes finished the session with solid gains. The Dow Jones Industrial Average, which tracks 30 blue-chip companies, rose 0.81% to 47,368.63 points. The S&P 500, representing the largest U.S. corporations, advanced 1.54% to 6,832.43, while the Nasdaq Composite, dominated by technology shares, climbed 2.27% to 23,527.17.

Equities gained after the U.S. Senate moved forward over the weekend with a motion to end the 40-day government shutdown, the longest on record, which has delayed the release of key economic reports.

Tech stocks led the rally, with Nvidia jumping 5.79% and Alphabet rising 3.90% as investors seized on bargain opportunities following a week of declines triggered by warnings from major banks about overheated valuations in the AI sector.

Tech Stock Lead the Way

The Philadelphia Semiconductor Index (SOX) climbed 3.02%, driven by Nvidia’s surge and additional gains in Advanced Micro Devices (+4.47%), Taiwan Semiconductor Manufacturing (+3.06%), and Broadcom (+2.56%).

Elsewhere in the artificial intelligence space, Palantir Technologies soared 8.83% after an investor call discussing its third-quarter results. The data analytics firm’s shares are now up more than 400% this year.

Eight of the eleven major sectors in the S&P 500 closed higher, led by communication services (+2.57%) and information technology (+2.52%). Within the Dow Jones, Nvidia led the advances, followed by Microsoft, which gained 1.88%.