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Shortly after the market opened, the Dow (UNDUE) was up around 500 points or 1.5%, while the overall S&P 500 (SPX) increased by 1.4%. Heavy technology Nasdaq Composite (COMP) was up 1.5%. The rally is not just on the heels of some stocks that are doing well, but is much broader.
Meanwhile, the yield on 10-year US Treasury bonds also rose to 1.56%.
The US stock market has experienced a roller coaster of late. Investors grapple with concerns about inflation, the US debt ceiling, the Evergrande debt crisis and the general state of the recovery.
Things were improving after Senate Minority Leader Mitch McConnell on Wednesday offered options to prevent America from defaulting on its debts. Republicans had previously rejected Democrats’ proposals to raise the debt ceiling, but a deal was announced Thursday morning. On top of that, weekly jobless claims were lower than expected and lower than the previous week’s level.
“Progress in debt ceiling talks is upping the mood in the market. The proposed deal in Washington will effectively see the box move towards December and allay concerns,” said analyst Fiona Cincotta. Principal of Financial Markets at City Index. a note to customers. “While this is clearly a short-term response, it is enough to satisfy the markets.”
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