The ASX will rise as Wall Street rises with debt ceilings

Wall Street ended sharply higher Thursday (U.S. time) in a broad-based rally led by Big Tech as a ceasefire in the debt ceiling of the U.S. Congress eased concerns about a possible government debt payment this month.

Mega-cap shares jumped 0.9 percent with Apple and Amazon.com rose 1.2 percent, the biggest boost to the S&P 500 and Nasdaq. Tesla and Google parent Alphabet both rose more than 1 percent.

Wall Street achieved solid gains across the board.

Wall Street achieved solid gains across the board.Credit:AP

The Dow Jones Industrial Average rose 1 percent to end at 34,754.94 points, while the S&P 500 rose 0.8 percent to 4,399.76. The Nasdaq Composite rose 1.1 percent to 14,654.02.

It sets the Australian stock market on a positive start to the session, with futures at 6.59 AEST pointing to a gain of 33 points or 0.5 per cent at the opening.

The U.S. Senate took a step toward passing a $ 480 billion ($ 656 billion) increase in the Treasury Department’s loan permit, which would postpone another party-political showdown until December.

Uncertainty over debt ceiling negotiations was a concern cited by investors in September, when the S&P 500 recorded its largest monthly percentage decline since the start of the coronavirus pandemic in March 2020.

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“Today’s (market) is driven by a small step in Washington toward rationality in being able to pay their bills, write some checks,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.

Meanwhile, data showed that the number of Americans filing new unemployment benefits fell the most last week by three in three months, suggesting that the recovery in the labor market was returning as the latest wave of COVID 19 infections began to decline.

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