Wall St. ends with solid gains as investors hail US-debt ceiling truce

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Wall St. ends with solid gains as investors hail US-debt ceiling truce

On Thursday, all three key indices of Wall St. had winded up the session sharply higher with Nasdaq leading the tally of gains, as both growth and value stocks attained a much-required vote of confidence following a truce between the Republican and Democratic Senators over a potential debt-ceiling gridlock.

Aside from that, a flurry of probing fundamentals including a sharp depreciation in initial US jobless claims alongside sky-flying natgas and crude oil prices among others, had catalysed a broad-based rally in the Wall Street on Thursday.

Nevertheless, a truce over the US Federal Reserve’s debt-ceiling stand-off came forth as a core talking point behind the day’s gains, as Democratic Senate Majority leader Chuck Schumer had reportedly cut a deal to arrange a procedural vote on Saturday over a legislation that in effect would heighten up the US Treasury’s borrowing capacity by $480 billion and would prevent a potential collapse in US credit rating.

The US Treasury’s coffer has been set to run out by October 19, unless the US Fed would lift its debt-ceiling barrier. Apart from that, US weekly jobless claims fell steeply last week, as a gradually healing US labour market appears to have regained impetus with an ease in delta cases that reportedly had spurred up hiring.

Wall St. gains as debt-ceiling truce spreads out a fresh puff

Citing statisitcs, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.98 per cent to 34,754.94 and benchmark S&P 500 jumped 0.83 per cent to 4,399.76, while tech-heavy Nasdaq jumped 1.05 per cent to 14,654.02.

Meanwhile, referring to a truce in US Senate over debt-ceiling hiccups, a chief investment officer at Bokeh Capital Partners in Pittsburgh, Kim Forrest, said, “Today's (market) is driven by a slight move in Washington towards rationality about being able to pay their bills, write some checks.