Equities rallied Monday on hopes that the US government shutdown could be nearing an end after reports said lawmakers had reached a deal to break the record-breaking 40-day impasse.

The prospect of a resumption of operations in the world's biggest economy helped temper lingering worries about extended tech valuations amid talk of an AI bubble following this year's eye-watering rally.

Investors have been growing increasingly concerned about the financial impact of the shutdown, which saw several government services halted, including air travel heading into the Thanksgiving holiday.

A University of Michigan survey last week showed a decline in consumer sentiment in November compared with October.

But CNN and Fox News reported on Sunday that senators had reached a bipartisan stopgap deal

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