Dow Surges Amid Hopes for Shutdown Resolution, AI Stocks Tumble

The Dow Jones Industrial Average reached a record high, buoyed by potential resolution of the U.S. government shutdown. AI-related stocks, including Nvidia, dropped due to valuation concerns. The shutdown resolution could restore economic data release and alleviate uncertainty, while Occidental Petroleum and Paramount Skydance showed notable gains.

The Dow Jones Industrial Average climbed to a record high on Tuesday, spurred by hopeful developments in ending the prolonged U.S. government shutdown. Meanwhile, Nvidia and other AI-linked stocks fell amid worries about overvaluations.

The uptick in the Dow and S&P 500 index came as U.S. lawmakers returned to Washington to vote on a measure expected to conclude the shutdown, which has impeded economic processes. "The anticipation is palpable that the shutdown's conclusion will get the economy back on track," commented CFRA's Chief Investment Strategist Sam Stovall. SoftBank's decision to sell $5.8 billion of Nvidia shares also contributed to this sector's decline.

The release of ADP's payroll figures indicating private employers cut 11,250 jobs weekly added to the somber market mood. President Donald Trump warned of potential economic fallout if the Supreme Court opposed his tariff actions. The Dow rose 559.33 points, closing at 47,934.46, as the market observed Veterans Day without bond trading.

(With inputs from agencies.)