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Dow rises 300 points as investors cheer short-term debt ceiling solution

 

 

Stocks rallied on Thursday as lawmakers reached a deal to increase the debt ceiling in the short-term, according to Senate Majority Leader Chuck Schumer.

 

The Dow Jones Industrial Average rose 337.95 points, or roughly 1%, to 34,754.94 helped by gains in Visa, Nike and Home Depot. The S&P 500 rallied 0.8% to 4,399.76, and the technology-focused Nasdaq Composite jumped nearly 1.1% to 14,654.02. Thursday’s gains put the major averages in the green for the week.

Stocks hit their highs of the session as Schumer announced on the Senate floor news of the debt ceiling compromise, which will avoid an unprecedented default for now.

 

Washington’s race to reach an agreement on the debt ceiling has been an overhang for the market this week as investors hoped to avoid a government default. Schumer said lawmakers reached a deal on a short-term debt ceiling increase, which he hopes will be passed later on Thursday. The deal will extend the debt ceiling through early December.

 

Reference: CNBC