- US Senate pushes loan limit hike to $480 billion
- US weekly jobless claims drop sharply
- Consumer Discretionary and Content Core Sectors
- Levi Strauss shares rise after profit-booking
- Index Jumps: Dow 0.98%, S&P 0.83%, Nasdaq 1.05%
Oct 7 (Businesshala) – Wall Street ended sharply higher on Thursday in a broad-based rally led by Big Tech, as the debt-limit deadlock in the US Congress eased concerns of a possible government debt default this month.
Mega-cap shares gained 0.9%, with Apple Inc (AAPL.O) and 1.2% up, with Amazon.com Inc (AMZN.O) providing the biggest boost to the S&P 500 and Nasdaq. Tesla (TSLA.O) and Google-parent Alphabet (GOOGL.O) both rose more than 1%.
The US Senate took a step toward passing a $480 billion increase in the Treasury Department’s lending authorization that would prevent another partisan showing by December.
Uncertainty over debt-ceiling talks was a concern investors cited in September as the S&P 500 reported its biggest monthly percentage drop since the start of the coronavirus pandemic in March 2020.
“Today’s (market) is driven by a modest move in Washington toward rationality about being able to pay your bills, write some checks,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
Meanwhile, data showed last week the number of Americans filing new claims for jobless benefits fell by the steepest in three months, suggesting a recovery in the labor market was gaining momentum as COVID-19 slowed down. The latest wave of -19 infections was beginning to subside.
The closely watched monthly US jobs report is due out on Friday.
Brad Neumann, Algeria’s director of market strategy, said: “Today’s numbers reinforce the expectation that there will be a significant move in employment in the coming months, and I think it’s positive for the economy.”
“Markets climbed a wall of worry today as fears of a credit-limit deadlock eased and hopes of a pick-up in job gains strengthened.”
The Dow Jones Industrial Average (.DJI) ended 0.98% higher at 34,754.94, while the S&P 500 (.SPX) ended 0.83% higher at 4,399.76.
The Nasdaq Composite (.IXIC) climbed 1.05% to close at 14,654.02.
The S&P 500 Materials Index (.SPLRCM) jumped 1.35% and the Consumer Discretionary Index (.SPLRCD) rose 1.50%, both leading in 11 sectors.
US-traded Chinese stocks Alibaba Group Holding (9988.HK) and Tencent Holdings (0700.HK) each rose nearly 8%, as US-China trade ties and Evergrande’s (3333.HK) debt crisis eased.
Investors will watch the third-quarter earnings report that starts coming out in earnest next week. According to Refinitiv, analysts expect average earnings per share of S&P 500 companies to rise 29% in the third quarter.
Shares of Levi Strauss & Company (LEVI.N) jumped 8.5% after the jeans maker beat third-quarter revenue and profit estimates.
Volume on US exchanges stood at 10.1 billion shares, compared to an average of 11 billion over the past 20 trading days.
Advancing issues declining to a 2.50-to-1 ratio on the NYSE; On the Nasdaq, a 2.49-to-1 ratio favored advisors.
The S&P 500 posted 31 new 52-week highs and four new lows; The Nasdaq Composite posted 93 new highs and 80 new lows.