Markets react to Senate 'kicking the can' on debt ceiling

by 24USATVOct. 7, 2021, 10 p.m. 19
-

Stephanie Link, Hightower chief investment strategist, and CNBC's Mike Santoli join Closing Bell to discuss the day's markets and how they're reacting to the Senate reaching a deal on the debt ceiling. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi Stocks rallied on Thursday as lawmakers reached a deal to increase the debt ceiling in the short-term, according to Senate Majority Leader Chuck Schumer. The Dow Jones Industrial Average rose 337.95 points, or roughly 1%, to 34,754.94 helped by gains in Visa, Nike and Home Depot. The S&P 500 rallied 0.8% to 4,399.76, and the technology-focused Nasdaq Composite jumped nearly 1.1% to 14,654.02. Thursday’s gains put the major averages in the green for the week. Stocks hit their highs of the session as Schumer announced on the Senate floor news of the debt ceiling compromise, which will avoid an unprecedented default for now. Washington’s race to reach an agreement on the debt ceiling has been an overhang for the market this week as investors hoped to avoid a government default. Schumer said lawmakers reached a deal on a short-term debt ceiling increase, which he hopes will be passed later on Thursday. The deal will extend the debt ceiling through early December. Stocks rose broadly on Thursday with technology shares and reopening plays trading higher. Twitter rose nearly 4.4%, Nvidia popped 1.8% and AMD rose 2.7%. Meanwhile, stock tied to the reopening also rose. General Motors rose roughly 4.7%. Costco shares added about 0.8% after reporting better-than-expected September sales. The small-cap benchmark Russell 2000 gained 1.5% on Thursday. Also helping sentiment on Thursday, weekly jobless claims fell sharply last week as the enhanced unemployment benefits ended, the Labor Department reported Thursday. Initial filings for unemployment benefits totaled 326,000 for the week ended Oct. 2, below the 345,000 Dow Jones estimate and a drop from the previous week’s 364,000. Optimism about the debt deal started midday on Wednesday, spurring stocks to reverse their downward course. The Dow reversed a 459-point drop and ended more than 100 points higher. The S&P advanced 0.4%, after falling as much as 1.27%. The Nasdaq Composite rose 0.5%, after dropping as much as 1.2%. October has been an especially volatile month, driven by uncertainty about U.S. fiscal and monetary policy and supply chain constraints. Markets may also be treading lightly heading into the third-quarter earnings season, which begins next week. Investors are awaiting Friday’s closely watched jobs report. The data is monitored by the Federal Reserve, as it mulls when to pull back its emergency pandemic stimulus measures, though the central bank has said it will look to wind down its bond-buying program soon. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV

Tags:
-

Related Articles

NEWS

Shipping executive talks supply chain nightmare

by 24USATVOct. 15, 2021, 10 p.m.2
NEWS

Biden pushes lower childcare costs

by 24USATVOct. 15, 2021, 10 p.m.2