Stocks rose broadly in morning trading on Wall Street as investors welcomed signals that a standoff in Congress over the federal debt ceiling is closer to a resolution.
The S&P 500 rose 1.4% as of 10:16 a.m. Eastern. Roughly 95% of stocks within the benchmark index gained ground. The Dow Jones Industrial Average rose 514 points, or 1.5%, to 34,930 and the Nasdaq rose 1.6%.
Markets in Europe and Asia were also broadly higher.
The market snapped out of a days-long bout of volatility late Wednesday after Senate GOP leader Mitch McConnell made an offer that would allow an emergency extension of the debt ceiling into December.
The debt ceiling caps the amount of money the federal government can borrow and it needed to be raised by Oct. 18. Treasury Secretary Janet Yellen had warned that the the nation would likely face a financial crisis and economic recession if Congress failed to do so.
The debt ceiling debate and the potential for an unprecedented federal default is one of many concerns weighing on the market. Those worries sent the benchmark S&P 500 swinging between daily gains and losses of more than 1% for four days.
Investors received another encouraging piece of news on Thursday after the Labor Department reported that the number of Americans applying for unemployment benefits fell last week for the first time in four weeks. The labor market has been struggling to recover from the pandemic's initial impact 18 months ago when lockdowns from COVID-19 gutted jobs.
Wall Street will get another snapshot Friday of the job market and its recovery when the Labor Department releases its employment report for September.
Inflation remains a key concern for Wall Street and investors are closely watching the Federal Reserve for any shift in its timetable for raising interest rates. The Fed’s policymaking committee recently signaled the central bank could start raising rates late next year. Analysts have said that the Fed could act sooner than expected if high inflation persists.
Bond yields rose. The yield on the 10-year Treasury rose to 1.55% from 1.52% late Wednesday.
COVID-19 continues to hamper the economic recovery following a surge of cases over the summer. Consumer spending and job growth was stunted and supply chain problems crimped operations in a wide range of industries.
More positive news on fighting off future spikes of the virus came from Pfizer on Thursday. It asked U.S. regulators to allow use of its COVID-19 vaccine in children ages 5 to 11. The drug developer's stock rose 1.9%.
There are now over 1,000 plant-based restaurants in the U.S. It's clear that people are hungry for vegan alternatives at restaurants nationwide. However, when it comes to pizza, vegan options don't have the best reputation. NUMU Food Group is looking to change that with its brand new vegan mozzarella. Mike Pytlinski, CEO of NUMU Food Group, joins Cheddar News to discuss.
Tattoo artist Katrina "Kat Tat" Jackson, famous for starring in the VH1 hit series "Black Ink Crew: Chicago," is also the first Black woman to own a tattoo shop in Beverly Hills. She joined Cheddar News to discuss her trailblazing work, the stigma BIPOC tattoo artists face in the industry, and the way the space has changed for artists of color since her start. "In the beginning, I remember walking into a tattoo shop just like, hey, I wanna learn, I wanna be a tattoo artist and kind of just being laughed at, not taken seriously," she said. "Even with the tattoo conventions, a lot of African American tattoo artists were almost scared to go to conventions because it's not a welcoming environment."
Jack Miller, Head of Trading at Baird, joined Closing Bell to break down how the Securities and Exchange Commission's proposals would change the landscape for individual investors, as they face stiff opposition from brokerages like Robinhood.
Robotics automation technology company Symbotic made its market debut on the Nasdaq via a SPAC merger with SVF Investment Corp. 3, a special purpose acquisition company sponsored by an affiliate of SoftBank Investment Advisers. Symbotic rang the Opening Bell at the Nasdaq to celebrate the occasion this morning. Its debut on Wall Street comes amid an urgent need for logistics solutions, as it aims to reimagine supply chains with its A.I.-powered robotic and software platform. Tom Earnst, CFO of Symbotic, and Vikas Parekh, managing partner at Softbank Investment Advisors, join Cheddar News' Closing Bell to discuss.
Michelle Castillo joined Closing Bell to break down Elon Musk's announcement to SpaceX employees that the Starlink internet business might not see itself as an IPO until 2025, Twitter planning to hand over the user data he requested as a condition of the acquisition, and Warren Buffet-backed Chinese EV company BYD stating it will be supplying batteries to Tesla "very soon."
At the age of 65, Judy Katz, who ran her own public relations firm for years, was looking for a change. After retirement, she started a brand-new business as an author and ghostwriter of books. Judy Katz joins Jamie Hopkins to discuss finding a new beginning as a ghostwriter and living life to the fullest post-retirement.
