(Updates with closing stock moves)

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Metsera ( MTSR ) slumps as Pfizer wins bidding war

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Health insurers fall as shutdown deal leaves out subsidies

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S&P 500 +1.54%, Nasdaq +2.27%, Dow +0.81%

By Purvi Agarwal and Noel Randewich

Nov 10 (Reuters) - Wall Street ended sharply higher 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, rose 5.8%.

AI data analytics firm Palantir ( PLTR ) jumped 8.8% and Tesla

climbed 3.7%.

"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."

The S&P 500 climbed 1.54% to end the session at 6,832.43

points.

The Nasdaq gained 2.27% to 23,527.17 points, its biggest

one-day percentage gain since May 27.

The Dow Jones Industrial Average rose 0.81% to 47,368.63

points.

The small-cap Russell 2000 gained 0.9%, while the

PHLX semiconductor index jumped 3%.

Volume on U.S. exchanges was relatively light, with 17.9

billion shares traded, compared with an average of 20.8 billion

shares over the previous 20 sessions.

Airlines came under pressure as government-directed flight

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

travel. United Airlines dipped 1.3% and American

Airlines ( AAL ) fell 2.5%.

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 ) dropped 8.8%, Humana fell 5.4% and

Elevance Health ( ELV ) declined 4.4%.

Metsera ( MTSR ) slumped 14.8% after Pfizer won a $10

billion bidding war to acquire the company.

Eli Lilly ( LLY ) rose 4.6% to a record high after Leerink

Partners upgraded its rating on the stock.

Advancing issues outnumbered declining ones within the S&P

500 by a 1.7-to-one ratio.

The S&P 500 posted 32 new highs and 8 new lows; the Nasdaq

recorded 106 new highs and 128 new lows.