US equities advanced on Tuesday afternoon, as optimism grew that the US government shutdown could soon end. The Dow Jones jumped over 550 points and the S&P 500 gained around 0.3% with roughly three quarters of its components higher as traders rotated into blue chip and cyclical names on expectations that a funding deal will pass the House this week. Progress in the Senate toward reopening the government lifted sentiment in economically sensitive sectors while health care leaders such as Merck (4%), Amgen (3.1%) and Johnson & Johnson (2.2%) led the Dow higher. Hopes that the resumption of government operations will release delayed economic data and support near term growth also buoyed broader sentiment. However, the tech heavy Nasdaq slipped around 0.2% as renewed pressure hit AI exposed stocks. SoftBank’s sale of its entire $5.8 billion Nvidia stake weighed on the sector with Nvidia falling about 3% while Micron, Oracle and Palantir each lost more than 2%.