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Metsera ( MTSR ) slumps as Pfizer ( PFE ) wins bidding war

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Health insurers fall after Trump's comments on healthcare

funds

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S&P 500 +1.41%, Nasdaq +2.17%, Dow +0.68%

(Updates to close)

By Purvi Agarwal and Noel Randewich

Nov 10 (Reuters) - Wall Street rallied on Monday, led by

big gains in Nvidia ( NVDA ), Palantir ( PLTR ) and other heavyweight AI-related

companies following progress in Washington to end a record

government shutdown.

The longest government shutdown in U.S. history could end

this week after a compromise that would restore federal

funding cleared an initial Senate hurdle late on Sunday, though

it was unclear when Congress would give final approval.

"The government shutdown was continuing a lot longer than

people had expected. There were concerns around the economy,

about flights potentially being canceled and having a wider

impact to the economy," said Chris Zaccarelli, Northlight Asset

Management's chief investment officer.

Heavyweight tech stocks rebounded from some recent losses.

Last week, the S&P 500 technology sector index tumbled

4.2%.

Nvidia ( NVDA ), the world's most valuable company, AI data

analytics firm Palantir ( PLTR ) and Tesla all surged.

"This is a rebound after being slightly oversold last week.

It's another example of the "buy the dip" mantra really acting

quickly in the tech and AI space," said Ross Mayfield,

investment strategy analyst at Baird in Louisville, Kentucky.

"There is nothing structural hitting the AI theme. In fact,

a lot of earnings reports have been really strong in that

sector."

According to preliminary data, the S&P 500

gained 103.48 points, or 1.54%, to end at 6,832.28

points, while the Nasdaq Composite gained 520.29 points,

or 2.26%, to 23,524.82. The Dow Jones Industrial Average

rose 385.12 points, or 0.82%, to 47,372.22.

Airlines came under pressure as government-directed flight

cuts and air traffic staffing absences disrupted U.S. air

travel. United Airlines and American Airlines ( AAL )

both dipped.

On betting website Polymarket, the probability of an end

to the shutdown this week stood at 88%.

The longest federal shutdown in history has created a data

gap for the Federal Reserve and markets alike, leaving them

dependent on private data that has given a mixed picture of the

economy.

Some Fed officials reiterated their caution regarding the

monetary policy decision at the central bank's next meeting,

while Fed Governor Stephen Miran repeated his call for a big

rate cut.

Optimism around artificial intelligence has fueled a bull

run in U.S. stocks this year, but concerns around monetization

and circular spending within the sector drove a bout of selling

recently. The Nasdaq last week marked its worst

performance in over seven months.

Meanwhile, third-quarter earnings season is nearly complete.

Of the 446 S&P 500 companies that have reported, 83% have

delivered better-than-expected earnings, according to data

compiled by LSEG.

Shares of health insurers dropped after the U.S. Senate

struck a deal to end the 40-day federal shutdown without

extending Affordable Care Act subsidies, setting up a December

vote on the issue instead.

Centene ( CNC ), Humana and Elevance Health ( ELV )

each lost ground.

Metsera ( MTSR ) slumped after Pfizer ( PFE ) won a $10 billion

bidding war to acquire the company.

Eli Lilly ( LLY ) shares hit an intraday record high after

Leerink Partners upgraded its rating on the stock.