Tech Stocks Shine Amid Government Shutdown Fears

The Nasdaq composite and S&P 500 edged higher on Monday, buoyed by gains in heavyweight technology stocks. Investors largely brushed aside concerns over a potential U.S. government shutdown and hawkish statements from a Federal Reserve official. The technology sector emerged as the key driver, fueled by optimism in artificial intelligence growth.

Despite the looming government funding standoff that threatens a shutdown, Wall Street appeared focused on enduring economic indicators like housing and consumer spending. Lindsey Bell, chief strategist at 248 Ventures, expressed confidence in the market's ability to overlook temporary setbacks, citing positive rate easing and economic resilience.

Historically, government shutdowns have had a negligible effect on corporate results, noted Burns McKinney of NFJ Investment Group. The market's forward-looking nature remains intact, aided by strategic investor maneuvers and reassuring trader sentiment. Meanwhile, Fed policymakers underscore the need for restrictive policies to temper inflation, with technology stocks continuing to buoy overall market performance.

(With inputs from agencies.)