Mumbai, Nov. 10 -- The Nasdaq dipped 49.46 points (0.2%) to 23,004.54 after plunging by as much as 2.1%, the S&P 500 inched up 8.48 points (0.1%) to 6,278.80 and the Dow rose 74.80 points (0.2%) to 46,987.10.

Market sentiment showed signs of recovery in afternoon trading as optimism grew over a possible end to the prolonged government shutdown. Senate Democrat Chuck Schumer's offer to back a short-term funding bill in exchange for maintaining enhanced Obamacare tax credits lifted hopes for compromise on Capitol Hill.

Still, investor caution persisted amid steep valuation worries tied to the artificial intelligence sector. Recent sell-offs, including Palantir's drop despite strong earnings and lowered consumer sentiment data from the Uni...