Wall Street ends with solid gains; investors hail U.S. debt-ceiling truce

Stock Markets1 hour ago (Oct 07, 2021 05:27PM ET)

(C) Reuters. A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 6, 2021. REUTERS/Brendan McDermid

By Noel Randewich, Lewis Krauskopf and Devik Jain

(Reuters) – Wall Street ended sharply higher on Thursday in a broad-based rally led by Big Tech, as a truce in the debt-ceiling standoff in the U.S. Congress relieved concerns of a possible government debt default this month.

Mega-cap stocks jumped with Apple Inc (NASDAQ:AAPL) up 0.9% and Amazon.com Inc (NASDAQ:AMZN) rising 1.2%, the biggest boosts to the S&P 500 and Nasdaq. Tesla (NASDAQ:TSLA) and Google-parent Alphabet (NASDAQ:GOOGL) both rose more than 1%.

The U.S. Senate took a step toward passing a $480 billion increase in Treasury Department borrowing authority, which would put off another partisan showdown until December.

Uncertainty over the debt-ceiling negotiations was one concern investors cited in September as the S&P 500 logged its biggest monthly percentage drop since the onset of the coronavirus pandemic in March 2020.

“Today’s (market) is driven by a slight move in Washington towards rationality about being able to pay their bills, write some checks,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

Meanwhile, data showed the number of Americans filing new claims for jobless benefits dropped last week by the most in three months, suggesting the labor market recovery was regaining momentum as the latest wave of COVID-19 infections began to subside.

The closely watched monthly U.S. jobs report is due on Friday.

“Today’s numbers reinforce the expectation that employment will take a significant step up in the coming months, and I think that’s positive for the economy,” said Brad Neuman, director of market strategy at Alger.

“The market climbed its wall of worry today as fears of a debt-ceiling impasse receded and hopes for an acceleration in employment gains were reinforced.”

The Dow Jones Industrial Average rose 0.98% to end at 34,754.94 points, while the S&P 500 gained 0.83% to 4,399.76.

The Nasdaq Composite climbed 1.05% to 14,654.02.

The S&P 500 materials index jumped 1.35% and the consumer discretionary index rallied 1.50%, both leading among 11 sectors.

U.S.-traded Chinese stocks Alibaba (NYSE:BABA) Group Holding and Tencent Holdings (OTC:TCEHY) each surged about 8% as concerns around U.S.-Sino trade relations and Evergrande’s debt crisis appeared to ease.

Investors will watch third-quarter earnings reports that start to arrive in earnest next week. Analysts on average estimate S&P 500 companies’ earnings per share rose 29% in the third quarter, according to Refinitiv.

Levi Strauss & Co (NYSE:LEVI) shares jumped 8.5% after the jeans maker beat third-quarter revenue and profit estimates.

Volume on U.S. exchanges was 10.1 billion shares, compared with the 11 billion average over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 2.50-to-1 ratio; on Nasdaq, a 2.49-to-1 ratio favored advancers.

The S&P 500 posted 31 new 52-week highs and four new lows; the Nasdaq Composite recorded 93 new highs and 80 new lows.

Wall Street ends with solid gains; investors hail U.S. debt-ceiling truce

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Stories

Enjoying my content?

Join the exclusive subscription today and get premium articles for free


Missionary group confirms kidnapping of 16 Americans, one Canadian

World17 minutes ago (Oct 17, 2021 04:50PM ET) 2/2 (C) Reuters. FILE PHOTO: A sign marks...

Gangs expand territory as Haiti government struggles to stay...

World17 minutes ago (Oct 17, 2021 03:50PM ET) (C) Reuters. FILE PHOTO: A general view...

A Sinister Six Movie Should Copy Spider-Man: No Way...

Sony's upcoming Sinister Six movie should take some inspiration from Spider-Man: No Way Home...

Masked Singer: Artist Who Was Cupcake Dishes on Unmasking

The celebrity formerly known as Cupcake on The Masked Singer opened up about competing...

Venezuelan opposition urges government to resume suspended talks

World8 minutes ago (Oct 17, 2021 03:00PM ET) 2/2 (C) Reuters. Gerardo Blyde Perez of Venezuela's...

U.S. Coast Guard boards ship in connection with California...

Commodities23 minutes ago (Oct 17, 2021 02:45PM ET) (C) Reuters. FILE PHOTO: Workers rake up...

Popular Categories