Stocks were halted on Thursday as lawmakers moved closer to a tentative proposal that would prevent the country from defaulting on its debt for the first time in less than two weeks, reversing recent losses stemming from uncertainty and recently battered industries. will carry forward.
The Dow Jones Industrial Average jumped 500 points, or 1.5%, to 34,917 at 11:00 a.m. EDT Thursday, helping the index erase nearly two weeks of losses from a potential default on Oct.
Meanwhile, the S&P 500 climbed 1.5% and the tech-heavy Nasdaq 1.7%, similarly sharp declines over the past two weeks and placing the index nearly 2% and 4% below its all-time highs set last month.
Stocks rose soon after Senate Majority Leader Chuck Schumer (D.N.Y.) announced Democrats would agree to Senate Minority Leader Mitch McConnell’s proposal to lift the $480 billion debt limit through December, allowing lawmakers. will get time to negotiate a long-term deal. After weeks of talking.
Major indices jumped 2% after McConnell’s offer Wednesday afternoon – a major pivot for the top Republican who has repeatedly hit out at measures to suspend debt limits for a full year.
A slew of stocks across industries led Thursday’s rally, with energy firm Freeport-McMoRan, betting company Penn National Gaming and online retailer eBay gaining 7%, 6% and 5%, respectively, leading the S&P.
what to see
From the Senate floor, Schumer said he expects the chamber to vote on a settlement debt limit deal by Thursday afternoon. In a morning note, analyst Adam Crisafuli, founder of Vital Knowledge Media, acknowledged that markets are celebrating the deal, but warned the uncertainty would not completely fade until lawmakers reached a long-term solution.
Despite Thursday’s deal, it is still unclear how Democrats will push to raise or suspend debt limits on their own. On Wednesday, McConnell declined to support the long-term measure unless Democrats abandon efforts for another multi-trillion dollar spending package. He said the stopgap measure should give Democrats “more than enough time to pass stand-alone debt ceiling legislation” on their own through a special budgetary process called reconciliation, which favors only a simple majority. Will bypass Republican support by requiring. However, Democrats insisted on using reconciliation to deal with the debt, with House Speaker Nancy Pelosi (D-Calif.). Instead Thrust for the bipartisan vote “When President Trump was president, we Democrats supported lifting the debt limit because it’s a responsible thing to do,” Pelosi said after the House passed a standalone debt measure. “I expect Republicans to act in an equally responsible manner.”
Senate agrees to raise debt limit to avoid ‘catastrophic’ default—for now (Businesshala)
New unemployment claims finally dropped a month later, but 4.2 million Americans still receiving benefits (Businesshala)