NEW YORK - US stocks ended higher on Monday as investors monitored the risk of a looming federal government shutdown and digested fresh corporate developments.
The Dow Jones Industrial Average rose 68.78 points, or 0.15 percent, to 46,316.07. The S&P 500 gained 17.51 points, or 0.26 percent, to 6,661.21. The Nasdaq Composite Index advanced 107.09 points, or 0.48 percent, to 22,591.15.
Nine of the 11 primary S&P 500 sectors finished in positive territory, with consumer discretionary and technology rising 0.55 percent and 0.49 percent, respectively. Energy and communication services led the laggards, down 1.91 percent and 0.45 percent.
Markets are weighing the high probability of a US government shutdown on Wednesday, with negotiations between Republicans and Democrats reaching a critical juncture. US President Donald Trump's meeting with congressional leaders on Monday is seen as a last chance to avert a halt to federal funding. Prediction market Polymarket put shutdown odds at about 70 percent.
The US Department of Labor said in a contingency plan that the Bureau of Labor Statistics would suspend all operations during a lapse in funding. This would include the release of key reports such as Friday's monthly jobs report and upcoming consumer and producer inflation data, which have been crucial for Federal Reserve policymaking and interest rate expectations.
On the corporate front, Nvidia rose 2.05 percent, rebounding after last week's skepticism toward the AI trade. AMD and Micron Technology gained 1.19 percent and 4.22 percent, respectively.
Despite recent doubts, analysts say AI-related investment remains a source of support for equities. "The AI capex story is showing no signs of slowdown. Moreover, other industries have also been benefiting from the tidal wave of AI infrastructure spend," Venu Krishna, head of US equity strategy at Barclays, said in a note on Monday. "Concentration warrants some caution, but with AI gaining momentum as the focal point of global growth, S&P 500 should be well-positioned vs. peers given its Tech-heavy sector mix."
