(MENAFN) U.S. equities closed with divergent results Monday as investors aggressively bid up artificial intelligence stocks following a wave of major partnership announcements that ignited enthusiasm across the technology sector.

The Dow Jones Industrial Average slid 226.19 points, or 0.48 percent, finishing at 47,336.68. The S&P 500 gained 11.77 points, or 0.17 percent, closing at 6,851.97, while the Nasdaq Composite surged 109.77 points, or 0.46 percent, to end at 23,834.72.

Seven of the eleven primary S&P 500 sectors retreated Monday, with materials and consumer staples leading declines at 0.56 percent and 0.47 percent, respectively. Consumer discretionary and technology sectors posted the strongest advances, climbing 1.70 percent and 0.39 percent, respectively.

Among the elite "Magnificent Seven" tech giants, Amazon rocketed 4 percent higher after unveiling a massive $38 billion partnership with OpenAI that will deploy hundreds of thousands of Nvidia graphics processing units for AI infrastructure development.

"The market is rewarding the key AI players today," said Gil Luria, head of technology research at D.A. Davidson, citing Nvidia, Microsoft, Google, Amazon and Palantir as the main beneficiaries.

Despite mounting worries over stretched valuations and ambiguity surrounding the Federal Reserve's monetary policy trajectory amid the ongoing U.S. federal government shutdown, UBS analysts maintain an optimistic outlook for equity markets.

"Despite the strong gains in equity markets this year, we continue to believe that this bull market has room to run and investors should position to benefit from the rally," Ulrike Hoffmann-Burchardi, global head of equities at UBS, wrote on Monday.

The week ahead promises another intensive corporate earnings period, with financial results anticipated from companies spanning multiple industries, including Advanced Micro Devices, Uber and Toyota.

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