October 7 (WNN) — The Dow Jones Industrial Average rose more than 300 points on Thursday, as shares continued to rally in response to Congress reaching a deal to raise the debt limit.
The blue-chip index rose 337.95 points, or 0.98%, while the S&P 500 closed up 0.83% and the Nasdaq Composite up 1.05%.
Stocks were largely upbeat by Senate Democratic Leader Chuck Schumer, D.N.Y., announcing that Senate leaders reached an agreement on a temporary extension of the debt limit with an expedited vote Thursday evening.
Amid a volatile start to October, Yung-Yoo Ma, chief investment strategist at BMO Wealth Management, told Yahoo Finance: “The debt ceiling is one of several factors that we think are causing these changes in the markets.” “Certainly when there’s a deal, when it’s more formal the market will get some rest.”
Tech stocks continued their rally after markets fell earlier in the month due to rising Treasury yields. Twitter stock rose 4.37% and chipmakers also got a boost as AMD outperformed Nvidia by 2.71% by 1.81%.
Shares of Rocket Lab USA rose 10.43% after the company announced late Wednesday that its Electron rocket had been selected by NASA to launch the space agency’s Advanced Composite Solar Sail System, or ACS3, in mid-2022. .
The market also got a boost as the Labor Department reported unemployment claims per week fell to 326,000 last week, about 40,000 fewer than the previous week. It was the first drop in four weeks.
There will also be a jobs report on Friday that could influence the Federal Reserve’s decision whether to ease its pandemic bond buying program.