U.S. stocks climbed on Monday, recovering from last week’s pullback in the artificial intelligence trade. The S&P 500 rose 0.26% to close at 6,661.21, while the Nasdaq Composite gained 0.48% to 22,591.15. The Dow Jones Industrial Average advanced 68.78 points, or 0.15%, finishing at 46,316.07.

Nvidia shares jumped nearly 2%, rebounding after recent doubts about the sustainability of AI infrastructure spending. Advanced Micro Devices and Micron Technology also advanced, rising more than 1% and 4%, respectively. Electronic Arts surged 4.5% after announcing plans to go private in a $55 billion deal, contributing to a broader surge in U.S. mergers and acquisitions, which have topped $1 trillion so far this year — a 29% increase from the same period in 2024, according to Goldman Sachs.

Last week, waning enthusiasm for AI weighed on markets, dragging the S&P 500 to its worst weekly loss since early August. Still, Barclays strategist Venu Krishna noted that AI-related capital expenditures remain strong, benefiting multiple industries and reinforcing U.S. equities’ advantage given their tech-heavy composition.

Meanwhile, investor attention is turning to Washington, where a potential federal government shutdown looms. If funding lapses, the Labor Department has said it will withhold key economic reports, including September’s jobs data. President Donald Trump also signaled possible mass firings of federal employees if a shutdown occurs.

While past shutdowns have had limited market impact, the absence of economic data could cloud the Federal Reserve’s policy outlook. Despite these risks, all three major indexes remain on track for September gains, led by the Nasdaq’s more than 5% rally.