U.S. stocks pushed higher while longer-term government debt fell after lawmakers reached a deal with President Donald Trump to extend the U.S. debt limit and fund the government through mid-December.
The S&P 500 Index added to its gains after Democratic congressional leaders announced the agreement, which also includes aid to victims of Hurricane Harvey. Ten-year Treasury yields jumped, while shorter-term bills showed a mixed reaction. Yields on bills maturing on Oct. 5 and Oct. 12 fell as much as 12 basis points but December yields climbed, as investors anticipated a rerun of the debt drama that roiled markets in recent weeks.
While the agreement mitigates one threat facing financial markets, plenty of other unresolved matters loom on the horizon. Federal Reserve Vice Chairman Stanley Fischer resigned effective next month after three years at the U.S. central bank. His departure “adds further uncertainty to the already murky outlook for the future of the central bank’s leadership,” according to Royce Mendes, an economist at CIBC.
The S&P 500 Index rose 0.31% to 2,465.57. The Dow Jones industrial average rose 54.33 points to close at 21,807.64, with Home Depot and Chevron contributing the most to the gains. Wednesday's gains follow the Dow's biggest one-day drop since August 17. The Nasdaq composite rose 0.28 percent to settle at 6,393.31 as some large-cap tech stocks, like Facebook and Netflix, regained their footing.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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