Major U.S. stock indexes ripped higher Thursday after Senate Majority Leader
Chuck Schumer
said lawmakers had reached a deal on a short-term debt-limit extension, which would put off a possible government default for several months.
Everything from shares of technology companies to energy firms to manufacturers and miners rose, hitting their session highs following Sen. Schumer’s remarks from the Senate floor. While the Senate still must vote on the deal, investors appeared ready to remove the debt ceiling as an obstacle to further gains.
The Dow Jones Industrial Average rallied about 500 points, or 1.5%, to 34925. The S&P 500 added 1.5%. The Nasdaq Composite rose even higher as technology stocks recouped recent losses, lifting the benchmark up 1.7%.
“Right now, there are loads of fears out there. It just takes a couple of positive developments and suddenly that picture changes,” said Lewis Grant, an equities portfolio manager at Federated Hermes.
Thursday’s gains put stocks on firm footing for the week. All three major benchmarks are up at least 1.2% over the last four trading days. That marks a full recovery from Monday losses, when a selloff in Facebook stock and shares of other big technology companies rippled through the market.
On Thursday, technology and other growth stocks rallied. Shares of Apple,
and Google parent Alphabet all rose more than 1%.
rose even higher, adding 3.1%. The company said Wednesday it would sell mobile ad firm MoPub to Applovin for $1.05 billion in cash.
Cyclical stocks also moved higher, as investors showed a willingness to snap up stocks at large.
advanced nearly 4%, while Dow and
both added around 3.5%.
Energy stocks also traded higher even as oil prices dipped, with futures for brent crude edging 0.3% lower to $80.83 a barrel. Russian President
said Wednesday that Moscow was ready to work on stabilizing the global energy market, causing a sudden reversal in natural gas prices, which had earlier soared to their highest level on record.
added 1.1%, while
rose nearly 3%.
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