Wall Street closes higher, boosted by expectations of the end of the shutdown in the US

(AFP) The New York Stock Exchange closed with mixed results on Tuesday, albeit with most indexes benefiting from expectations over the end of the U.S. budget impasse.

Tech stocks suffered declines due to doubts about their valuation level.

The Dow Jones was up 1.18% and the broader S&P 500 index was up 0.21%. In contrast, the Nasdaq lost 0.25%.

After Monday's rally, U.S. stocks opened mostly lower on lingering concerns about the stratospheric growth in valuations of major AI players.

While some major tech stocks closed in positive territory, the Nasdaq index fell 0.3% and was the only one of the three major U.S. indexes to retreat.

"There are definitely concerns about valuations, but that doesn't mean the market is going to crash," Tim Urbanowicz, of Innovator Capital Management, said. "It just leaves a lot less room for bad news."

Shares of Nvidia, whose processors are highly valued by companies that train and operate AI, dropped 3%.

Kathleen Brooks, director of research at trading group XTB, pointed out that tech stocks are not driving the market.

"Without the momentum helping U.S. indexes move higher, volatility could take over, so we don't expect stocks to move in a straight line for now, and the market correction may not be over," she wrote in a note to clients.

Meanwhile, investors were encouraged by the advancement of a bill in Congress to reopen the government, which would trigger the release of key U.S. economic indicators, including employment and consumer prices, in the coming weeks.