Wall Street ends with solid gains; investors hail US debt-ceiling truce

Wall Street ends with solid gains; investors hail US debt-ceiling truce


ended sharply higher on Thursday in a broad-based rally led by heavyweight technology shares, as a truce in the debt-ceiling standoff in the US Congress relieved concerns of a possible government debt default this month.

Mega-cap stocks, including Apple Inc, Amazon.com Inc and Microsoft Corp, jumped and were the biggest boosts to the S&P 500 and Nasdaq.

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.”

Unofficially, the Industrial Average rose 1% to end at 34,760.34 points, while the S&P 500 gained 0.83% to 4,399.82. The Nasdaq Composite climbed 1.04% to 14,653.38.

The S&P 500 materials and consumer discretionary indexes were among the strongest performers of 11 sectors.

US-traded Chinese stocks including Alibaba Group Holding and Tencent Holdings surged as concerns around US-Sino trade relations and Evergrande’s debt crisis appeared to ease.

Investors will soon turn their attention to 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 shares jumped after the jeans maker beat third-quarter revenue and profit estimates.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *