US stocks closed higher as investors bought technology stocks while ignoring uncertainty over the possibility of a government shutdown and hawkish statements from Federal Reserve (Fed) officials.
The rise was supported by bets on the growth of artificial intelligence (AI) and expectations that the Fed will continue to cut interest rates, despite inflationary pressures and labor market uncertainty.
Cleveland Fed President Beth Hammack stressed that the central bank needs to maintain tighter monetary policy to curb inflation.
St. Louis Fed President Alberto Musalem said he was open to cutting interest rates, but stressed the need to maintain high rates to curb inflation, which is still around 1% above the 2% target.
The Dow Jones index rose 0.15% to 46,319.07 points, the S&P 500 increased 0.26% to 6,661.21 points, while the technology-focused Nasdaq rose 0.48% to 22,591.15 points.
Wall Street's main focus this week is also on the funding dispute between Republicans and Democrats that risks escalating the US government shutdown starting Wednesday.
Congressional leaders from both parties met with President Donald Trump at the White House on Wednesday, but talks on funding ended without any agreement to avoid a government shutdown.
The chief strategist at 248 Ventures in Charlotte, North Carolina, said that while the Labor Department may delay the September NFP jobs report if the government shutdown occurs, that factor is not the main driver of the market.
Trading volume on US exchanges was $17.91 billion, compared to an average of $18.25 billion over the past 20 trading days.
