(Businesshala) – U.S. stocks climbed on Thursday in a broad-based rally led by heavyweight technology stocks, following a temporary struggle in a debt-limit standoff in Congress to relieve concerns of a possible government debt default later this month. .
US Senate Majority Leader Chuck Schumer announced that Senate leaders have agreed to extend the Treasury Department’s lending authority until early December, with a $480 billion loan limit coming as soon as Saturday. With a possible vote for enhancement.
“Today (the 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.
Mega-cap stocks were back in action — Microsoft Corp, Apple Inc, Amazon.com Inc and Alphabet Inc rose between 1% and 1.8%, giving the biggest boost to the S&P 500 and Nasdaq.
All 11 major S&P 500 sectors advanced, with eight jumping more than 1%. Content was the biggest gainer, up 2%, followed by healthcare and consumer discretionary.
The CBOE Volatility Index, also known as Wall Street’s fear gauge, fell to its lowest level since September 24.
At 11:51 am, the Dow Jones Industrial Average was up 512.92 points, or 1.49%, at 34,929.91, the S&P 500 was up 61.61 points, or 1.41%, at 4,425.16 and the Nasdaq Composite was up 243.65 points, or 1.68. %, at 14,745.56.
Wall Street’s main indexes are now set for weekly gains, after recovering from selling pressure in heavyweight high-growth stocks earlier in the week when Treasury yields continued to rise on expectations of increased inflation.
“I am not worried about the markets in the short term. You have seen these very serious improvements that offer a buy on dip opportunity,” said Greg Swenson, founding partner at Briggs McAdams.
Meanwhile, data showed fewer Americans than expected filed new claims for jobless benefits last week. It also showed layoffs from a 24-year low in September.
This comes after a survey by the ADP National Employment Report showed strong growth in private payrolls in September and ahead of more comprehensive non-farm payroll data due on Friday. This is expected to strengthen the case for slowing the Federal Reserve’s asset purchases.
“Those two bits of data fed into today’s nice action because we’re expecting a very good number, but not such a hot number, that would force the Fed’s hand to really increase the taper. I think We’re going to get jobs in Goldilocks numbers,” Forrest said.
Levi Strauss & Co jumped 8.8 percent after the jeans maker beat third-quarter revenue and profit estimates, prompting a spurt in demand for jeans as people refreshed their wardrobes.
Snap Inc. gained 5.3% after launching an in-app tool to educate users about the dangers of drugs.
Moving issues declined from a 4.35-to-1 ratio on the NYSE and 3.93-to-1 on the Nasdaq.
The S&P index recorded 30 new 52-week highs and three new lows, while the Nasdaq recorded 76 new highs and 51 new lows.