S&P 500 rises as plan to end shutdown starts moving through Congress

The S&P 500 rose on Monday after Senate lawmakers took a critical step towards a potential deal to end the historic U.S. government shutdown.

The broad market index gained 1.3%, while the Nasdaq Composite advanced 2%. The Dow Jones Industrial Average climbed 239 points, or 0.5%.

Nvidia, Broadcom and other artificial intelligence bull market leaders led the gains as a possible end to the shutdown put investors in a risk-taking mood again. Microsoft shares also rose almost 1%, on pace to snap an eight-day losing streak. That's the stock's longest daily slide since 2011. Those stocks led the broader market lower last week as those on Wall Street grew worrisome about elevated valuations in the AI trade.

Investors continue to monitor lawmakers' negotiations to pass a federal funding bill that would end a shutdown.

A procedural measure that allows other votes on the agreement to be held on Monday was approved by a minimum of 60 yes votes, after eight senators in the Democratic caucus broke with party leadership to support the deal.

The deal being would reopen the government into January and reverse some of the recent mass federal layoffs. It also includes future protections for government workers. The agreement does not include an extension of Affordable Care Act subsidies, a key sticking point for most Democrats, but it would call for a vote on the subsidies in December.