STORY: U.S. stocks closed modestly higher on Monday, with the Dow gaining more than a tenth of a percent, the S&P 500 adding about a quarter of a percent and the Nasdaq climbing roughly half a percent.

The technology sector provided the S&P 500’s biggest boost as investors bet on growth from AI, explains Mary Ann Bartels, chief investment strategist at Sanctuary Wealth.

“So sometimes you can have what’s called ‘window dressing,’ meaning that fund managers want to buy the winners for the quarter and they get rid of the losers. [FLASH] This quarter has been great and the winners have been tech and tech-related companies. So you’re pretty much seeing those stocks perform very well. Now, normally after the quarter ends, you may see another rebalancing by the portfolio managers. And as we enter the month of October, since we didn’t get the seasonal weakness in September, there is some risk that we get some seasonal weakness in October, especially that we’re facing a potential government shutdown.”

A standoff between Republicans and Democrats over funding has raised the prospect of a government shutdown beginning Wednesday, the first day of the U.S. government’s fiscal 2026.

Monday’s stock moves included U.S.-listed shares of cannabis-related companies, which rose after President Trump shared a video on Sunday promoting the health benefits of hemp-derived cannabidiol.

Shares of Canopy Growth rallied more than 17%, while Cronos Group climbed about 13% and Tilray Brands soared more than 60%.

Shares of Lam Research advanced more than 2% after Deutsche Bank upgraded the rating on the chip-making equipment firm to “buy” from “hold.”

And shares of digital marketing firm AppLovin climbed more than 6% to set a fresh record high after Morgan Stanley raised the target price on the stock to $750 from $480.