Wall Street stocks finished mostly higher on Wednesday with the Dow climbing to a fresh record on hopes a US government shutdown would soon end, while oil prices fell sharply on oversupply worries.

The Dow rose 0.7 percent to finish at 48,254, its first close above 48,000 as some market watchers pointed to a rotation to industrial names amid worries that artificial intelligence stocks are overvalued.

The Nasdaq finished down for the second straight day.

Traders broadly welcomed an expected congressional vote to reopen the government, after the longest shutdown in US history effectively stemmed the flow of official economic data and closed down vital services.

The House of Representatives appeared likely to vote on Wednesday on a spending bill to solve the budget stand-off after eight Democrats broke ranks in the Senate to pass a short-term funding bill.

Around 670,000 furloughed civil servants and a similar number who were kept at their posts with no compensation – including more than 60,000 air traffic controllers and airport security staff – will get back pay.

Meanwhile, in Europe, Paris hit a new record and Frankfurt also rose after a mixed day on Asian markets.

"The end of the shutdown is positive for financial markets as we should get a clear read on economic data in the next week or so," said Kathleen Brooks, research director at trading group XTB.

However, she said the prospect of a resumption of government services was fuelling demand for "risk assets."

Oil prices tumbled after the monthly oil market report of the Organisation of the Petroleum Exporting Countries projected a jump in supply in the third quarter. In its November report, the group sees oversupply in this period after forecasting a deficit in its October report.

Among individual companies, Advanced Micro Devices surged 9.0 percent after projecting greater than 35 percent revenue in annual compound growth rate amid the surge in AI investment.

The S&P 500 gained 0.1 percent, to 6,850, while the Nasdaq lost 0.3 percent, to 23,406. The Dow rose 0.7 percent, to 48,254. (AFP)