{"id":122499,"date":"2021-10-06T19:32:39","date_gmt":"2021-10-06T19:32:39","guid":{"rendered":"https:\/\/fin2me.com\/?p=122499"},"modified":"2021-10-06T19:32:39","modified_gmt":"2021-10-06T19:32:39","slug":"wall-street-rises-on-optimism-about-u-s-debt-ceiling-deal","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/wall-street-rises-on-optimism-about-u-s-debt-ceiling-deal\/","title":{"rendered":"Wall Street rises on optimism about U.S. debt-ceiling deal"},"content":{"rendered":"
(Reuters) – U.S. stock indexes rose on Wednesday, recouping early losses and turning positive as investors grew more optimistic that congressional Democrats and Republicans could reach a deal to avert a government debt default.<\/p> Top U.S. Senate Republican Mitch McConnell said his party would support an extension of the federal debt ceiling into December, a move that would head off a historic default with a heavy economic toll.<\/p>\n \u201cMcConnell made some dovish comments about temporarily extending the debt ceiling,\u201d said Jay Hatfield, founder and portfolio manager at Infrastructure Capital Advisors. \u201cThat\u2019s going to be interpreted in the short-run as positive.\u201d<\/p>\n McConnell\u2019s offer could provide an off-ramp to a months-long standoff between President Joe Biden\u2019s Democrats and McConnell\u2019s Republicans, who had been expected on Wednesday to block a third attempt by Senate Democrats to raise the $28.4 trillion debt ceiling.<\/p>\n In afternoon trade, the Dow Jones Industrial Average was up 0.14% at 34,363.3 points, while the S&P 500 gained 0.25% to 4,356.69.<\/p>\n The Nasdaq Composite added 0.43% to 14,495.61.<\/p>\n Stocks fell early after a strong showing of private jobs in September fueled bets the Federal Reserve could start reining in monetary stimulus soon.<\/p>\n Mega-cap growth stocks Amazon and Microsoft both were last up more than 1%, surging after the benchmark U.S. 10-year Treasury yield retreated from three-month highs by early afternoon. [US\/]<\/p>\n The ADP National Employment Report showed private payrolls increased by 568,000 jobs last month. Economists polled by Reuters had forecast a rise of 428,000 jobs.<\/p>\n \u201cPositive labor market data comes with the implication that the Fed can tighten policy at a quicker pace. But the fact that hiring is up shouldn\u2019t be discounted \u2014 it\u2019s definitely a good thing in terms of recovery,\u201d said Mike Loewengart, managing director, investment strategy at E*TRADE Financial.<\/p>\n The more comprehensive non-farm payrolls data is due on Friday. It is expected to cement the case for the Fed\u2019s slowing of asset purchases.<\/p>\n Oil prices hit multi-year highs early, but crude prices retreated from those highs while the S&P 500 energy sector index slid 1%, the weakest performer among 11 sector indexes.<\/p>\n American Airlines Group fell 3.7% after Goldman Sachs cut its rating on the carrier to \u201csell\u201d from \u201cneutral\u201d.<\/p>\n Shares in steelmaker Nucor Corp dropped 2.5% after Goldman Sachs lowered its rating to \u201cneutral\u201d from \u201cbuy\u201d.<\/p>\n Declining issues outnumbered advancing ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.55-to-1 ratio favored decliners.<\/p>\n The S&P 500 posted 1 new 52-week highs and 9 new lows; the Nasdaq Composite recorded 25 new highs and 229 new lows.<\/p>\n