Dow closes up 100 points on possible debt ceiling deal progress, recovering 450-point loss
Stocks staged a comeback on Wednesday as investors grew optimistic about a debt ceiling deal and bought into technology stocks.
The Dow Jones Industrial Average rose 102.32 points to 34,416.99, earning back a 459-point loss from earlier in the session. The S&P 500 advanced 0.4% to 4,363.55, after falling 1.27% at its session low. The technology-focused Nasdaq Composite rose 0.5% to 14,501.91, after dropping as much as 1.2%.
Stocks reversed course on news that Senate Minority Leader Mitch McConnell told a closed meeting of Republicans that he would offer a short-term debt ceiling extension later Wednesday. That would help relieve some pressure on Congress to avoid a U.S. default currently expected on Oct. 18.
October continued its volatility on Wednesday amid concerns about rising rates, higher inflation, the state of the reopening and the debt limit. So far in the three prior trading sessions of October, the Dow has gained 483 points, lost 324 points and on Tuesday, jumped 312 points. On Wednesday, the Dow swung more than 550 points.
Reference: CNBC
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