NEW YORK - US stocks closed higher on Monday after the US Senate took a key step toward ending the longest US federal government shutdown in history.

The Dow Jones Industrial Average climbed 381.53 points, or 0.81 percent, to 47,368.63. The S&P 500 gained 103.63 points, or 1.54 percent, to 6,832.43. The Nasdaq Composite Index advanced 522.64 points, or 2.27 percent, to 23,527.17.

Eight of the 11 primary S&P 500 sectors finished higher, led by technology and communication services, which rose 2.68 percent and 2.53 percent, respectively. Consumer staples and real estate lagged, down 0.34 percent and 0.14 percent.

On late Sunday, US senators approved a procedural motion paving the way for additional votes on a deal to end the government shutdown, now in its 41st day, when eight Democrats joined Republicans to reach the 60-vote threshold required to advance the measure.

The tentative deal would reopen federal agencies through January and reverse some of the recent mass layoffs. A final Senate vote is still required before the bill moves to the House.

The prolonged shutdown has taken a toll on consumer sentiment, which dropped in November to its lowest level since June 2022, when inflation surged to a 40-year high, according to the latest University of Michigan survey.

Tim Holland, chief investment officer at Orion, told CNBC that "it's been a bumpy November for risk assets," noting that concerns over the shutdown, lofty valuations, and a possible artificial intelligence (AI) bubble have weighed on investor sentiment.

AI stocks rebounded Monday, with Palantir Technologies jumping nearly 9 percent after an 11 percent drop last week. Micron Technology, Nvidia and Advanced Micro Devices gained around 6.5 percent, 6 percent and 4.5 percent, respectively.

"This week, investors will be looking to see if markets can regain confidence ... further tech deals, such as the recent 38-billion-US-dollar agreement between OpenAI and Amazon, could serve as a reminder of the momentum in the sector," wrote Mark Haefele, UBS global wealth management CIO, while investors will have to wait until Nov. 19 for Nvidia results.

Meanwhile, Metsera shares slumped 14.8 percent after the weight-loss drugmaker agreed to be acquired by Pfizer for about 10 billion dollars following Novo Nordisk's withdrawal from a bidding war. Novo Nordisk shares edged up less than 1 percent, while Pfizer slipped nearly 1 percent after early gains.

Tesla rose 3.66 percent, recovering some of Friday's 4 percent loss after shareholders approved a proposed trillion-dollar pay package for CEO Elon Musk, contingent on the company reaching ambitious performance targets.