Stock markets posted strong gains Monday as investors cheered prospects that the US government shutdown could be nearing an end, after reports said lawmakers had reached a deal to break the record 40-day impasse.

The possibility of resuming operations in the world's biggest economy helped temper lingering worries about extended tech valuations amid talk of an AI bubble.

A group of Democrats in the Senate sided with Republicans in a procedural vote on the deal Sunday evening -- clearing the way for a formal debate -- after reaching a bipartisan agreement to fund operations through January.

"The more risk-on mood means it's pretty much a sea of green on the boards," said Neil Wilson, UK Investor Strategist at Saxo.

A government re-opening could also provide clarity on US inflation and on

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