Wall Street Soars Amid AI Surge and Government Shutdown Progress

Wall Street closed significantly higher on Monday, driven by gains in AI-related companies like Nvidia and Palantir. Progress towards ending the U.S. government shutdown spurred optimism, while tech stocks rebounded sharply. The Nasdaq saw its largest one-day gain since May, fueled by strong earnings reports in the tech sector.

Wall Street saw a robust close on Monday with significant gains in AI-related giants Nvidia and Palantir, as breakthroughs in Washington hinted at an end to the U.S. government's longest shutdown. The stoppage, the most prolonged in history, seemed poised for resolution after a Senate agreement emerged, although final Congressional approval remained pending.

Tech stocks, including the S&P 500 technology sector, rebounded with notable strength, recovering from last week's losses. Nvidia, the world's leading tech firm, rose by 5.8%, while Palantir, renowned for AI data analytics, surged 8.8%. The tech sector displayed resilience, underscoring the persistent 'buy the dip' strategy among investors.

Market indices reflected positive momentum, with the S&P 500 rising 1.54% and the Nasdaq achieving a 2.27% increase. However, the uncertainty around uninterrupted air travel due to government-imposed restrictions pressured airlines like United and American. Additionally, health insurers faced downturns following legislative developments concerning healthcare subsidies.

(With inputs from agencies.)