The Nasdaq climbed 88.89 points (0.4%) to 22,844.05, the Dow rose 78.62 points (0.2%) to 46,519.72 and the S&P 500 inched up 4.15 points (0.1%) to 6,715.35.

Tech stocks pushed higher on optimism around the artificial intelligence trade, with Nvidia closing at a record high and AMD surging 3.5%. The momentum followed reports that OpenAI secured a $500 billion valuation through a $6.6 billion stock sale, making it the world's most valuable privately-owned company.

Meanwhile, Wall Street largely brushed off worries about the U.S. government shutdown, now in its second day. With Senate votes delayed until Friday due to Yom Kippur, key economic reports such as jobless claims and factory orders remain postponed, adding uncertainty to the outlook.

Semiconductor stocks turned in a strong performance amid the AI optimism, driving the Philadelphia Semiconductor Index up by 1.9% to a record closing high. Airline stocks displayed notable strength, as reflected by the 1.2% gain posted by the NYSE Arca Airline Index. The index bounced off its lowest closing level in almost two months. Energy stocks moved lower along with the price of crude oil, dragging the Philadelphia Oil Service Index down by 2.5% and the NYSE Arca Oil Index down by 1.2%. Pharmaceutical stocks too saw some weakness following a two-day surge, resulting in a 1% loss by the NYSE Arca Pharmaceutical Index.

Asia-Pacific stocks moved mostly higher while Japan's Nikkei 2225 Index advanced by 0.9%, Hong Kong's Hang Seng Index surged by 1.6%. Most European stocks moved upwards. The German DAX Index and the French CAC 40 Index jumped by 1.3% and 1.1%, although the U.K.'s FTSE 100 Index bucked the uptrend and dipped by 0.2%.

In the bond market, treasuries moved modestly higher over the course of the session after recovering from initial weakness. Currently, the yield on the benchmark ten-year note which moves opposite of its price, dipped 1.8 bps to 4.08%.

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