US stocks have jumped amid hopes the partial government shutdown will not seriously harm the economy.
The Dow Jones Industrial Average rose 62.03 points (0.41 per cent) to 15,191.70.
The broad-based S&P 500 tacked on 13.45 (0.80 per cent) at 1,695.00, while the tech-rich Nasdaq Composite Index added 46.50 (1.23 per cent) at 3,817.98.
Analysts said many investors had already priced in a government shutdown, limiting the hit when it actually occurred at midnight Monday.
Also, many predict a speedy resolution.
“Most people seem to be pretty optimistic that at some point, a deal will be struck and it won’t go on too long,” said William Lynch, director of investments at Hinsdale Associates.
But Mace Blicksilver, director of Marblehead Asset Management, said it would be “very hard” to extend the gains if the shutdown persisted for several days.
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Analysts also pointed to a report showing manufacturing unexpectedly picked up in September.
The Institute for Supply Management’s purchasing managers index for manufacturing activity rose to 56.2 per cent last month from 55.7 per cent in August.
Apple shot up 2.4 per cent after activist investor Carl Icahn reported that he lobbied Apple chief executive Tim Cook for a $US150 billion ($A161 billion) share buyback. The two men had a “cordial” dinner Monday night, Icahn said via Twitter.
Online retailer Amazon rose 2.7 per cent after announcing it would hire more than 70,000 full-time temporary workers for the US holiday retail season, a 40 per cent increase over last year.
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