The Dow Jones Industrial Average rose 525 points, or 1.23%, while the S&P 500 index and the Nasdaq Composite index climbed 1.43% and 1.59%, respectively.
Senate Majority Leader Chuck Schumer, D-N.Y., said a deal has been reached to extend the debt ceiling through early December. A report out Wednesday said Republicans were willing to raise the limit, but that they wanted a deal tied to a number and not a specific date. A vote must still take place in both the Senate and the House of Representatives.
In economic data, initial jobless claims fell by 38,000 to 326,000 last week, making for the first decline in a month. Continuing claims, meanwhile, hit a pandemic-era low of 2.714 million. The report, which exceed analysts’ expectations, sets the stage for Friday’s jobs report.
In stocks, mega cap technology companies, including Apple Inc., Amazon Inc. and Microsoft Corp., were on track for a third straight day of gains.
Meanwhile, Barry Diller’s IAC/Interactive Corp. agreed to buy magazine publisher Meredith for $42.18 per share, or $2.7 billion. The deal does not include the local media group Gray Television, which was sold for $16.99 per share and is scheduled to close later this year.
Video: Yellen warns of historic financial crisis as debt ceiling deadline looms (FOX News)
Twitter Inc. reached a deal to sell mobile ad company MoPub to AppLovin for $1.05 billion cash. Twitter bought the company in 2013 in a deal that was estimated to be worth more than $350 million.
Elsewhere, Costco Wholesale Corp. said September sales spiked 15.8% from a year ago, topping analysts’ forecasts.
Levi Strauss & Co. reported earnings and revenue that exceed estimates as back-to-school shopping boosted sales.
In commodities, West Texas Intermediate crude oil dipped 77 cents to $76.66 a barrel and gold lost 40 cents to $1761.40 an ounce.
Overseas markets were in rally mode.
European bourses were sharply higher with Britain’s FTSE 100 gaining 1.26%, Germany’s DAX 30 rising 1.69% and France’s CAC 40 advancing 1.73%.
In Asia, Hong Kong’s Hang Seng index soared 3.07% ad Japan’s Nikkei 225 ticked up 0.54%. China’s Shanghai Composite remained closed for holiday.