U.S. stocks gain on optimism for D.C. stalemate end; Dow rises 0.73%
Published Oct 11, 2013 04:24PM ET
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.73%, the S&P 500 index rose 0.63%, while the Nasdaq Composite index rose 0.83%.
Expectations for an end to the U.S. fiscal deadlock grew after Republicans on Thursday offered to extend the government's borrowing authority for several weeks, temporarily staving off a default, which sent stocks rising in a relief rally.
The White House has yet to agree on the offer, though talks between President Barack Obama and congressional Republicans continued Friday, which boosted spirits despite a disappointing consumer sentiment report.
U.S. Treasury Secretary Jack Lew reiterated Thursday that the U.S. will reach its debt ceiling on Oct. 17 and warned that the political crisis is starting to hurt the economy. Lew was making his comments during testimony before the Senate finance committee.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment index for October fell to 75.2 from 77.5 in September.
Analysts were expecting a downtick to 76.0.
The study also found that inflation expectations for this month declined to 2.9%, from 3.3% in September.
Solid quarterly earnings reports from JPMorgan Chase and Wells Fargo boosted stock prices as well.
Leading Dow Jones Industrial Average performers included Johnson & Johnson, up 1.91%, Visa, up 1.59%, and Goldman Sachs, up 1.23%.
The Dow Jones Industrial Average's worst performers included DuPont, down 0.62%, Boeing, down 0.57%, and Merck, down 0.40%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.10%, France's CAC 40 rose 0.04%, while Germany's DAX 30 rose 0.45%. Meanwhile, in the U.K. the FTSE 100 finished up 0.88%.
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