(Updates with details of afternoon trading)

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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%

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 reversed some recent losses. Last

week, the S&P 500 technology sector index tumbled

4.2%.

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

almost 5%. AI data analytics firm Palantir ( PLTR ) jumped 9%

and Tesla added 4.1%.

"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 was last up 1.41% at 6,823.88 points.

The Nasdaq gained 2.17% to 23,503.80 points, while the Dow

Jones Industrial Average was up 0.68% at 47,307.88 points.

The CBOE volatility index eased to 18.26, retreating

from a three-week high touched on Friday.

The small-cap Russell 2000 gained 1.2%, while the PHLX

semiconductor index rose 2.8%.

Airlines came under pressure as government-directed flight

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

travel. United Airlines dipped 0.6% and American

Airlines ( AAL ) fell 2.2%.

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 ) fell 8%, while Humana and Elevance

Health ( ELV ) each lost more than 4%.

Metsera ( MTSR ) slumped 15% after Pfizer ( PFE ) won a $10 billion

bidding war to acquire the company.

Eli Lilly ( LLY ) shares gained 4.3% and hit an intraday record

high after Leerink Partners upgraded its rating on the stock.

Advancing issues outnumbered falling ones within the S&P 500

by a 1.5-to-one ratio.

The S&P 500 posted 25 new highs and 8 new lows; the Nasdaq

recorded 90 new highs and 109 new lows.