Wall Street Trading Surges on News of Debt Limit Deal
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iStock/Thinkstock(NEW YORK) — News of the expected deal in Washington over the federal debt limit helped the Dow Jones Industrial Average to a 205 point gain Wednesday. The blue chips index finished the session at 15,373.83.
The Dow had been close to 200 points higher for much of the session, and the broader indexes were more than one percent higher.
The Nasdaq Composite and S&P 500 also finished sharply higher Wednesday. The Nasdaq closed up 45 points, while the S&P was up 23 points.
It would not be surprising on Thursday to see stocks have a bit of a Capitol Hill hangover. A number of analysts say they think the market will “sell the news.”
Now the market will turn its attention back to corporate earnings and the country’s economic outlook. The latest Beige Book report from the Federal Reserve doesn’t show as much green as the Fed would like to see. It finds while overall economic growth is steady, growth slowed in Philadelphia, Richmond, Chicago and Kansas City from September through early October.
The National Association of Homebuilders/Wells Fargo Builder Sentiment Index dropped two points last month, but it’s still in the healthy range.
The National Retail Federation, meanwhile, is predicting Americans will play it safe when tackling those holiday shopping lists. A report from the group says we’ll spend just under $787, about two percent less than last year.
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