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Dow rises 285 points on investor optimism over debt ceiling extension

Business Insider logo Business Insider 10/7/2021 (Isabelle Lee)
Drew Angerer/Getty Images © Drew Angerer/Getty Images Drew Angerer/Getty Images

US stocks were higher on Thursday as investors cheered the proposed debt ceiling extension until December.

The benchmark S&P 500 edged higher Thursday while the tech-heavy Nasdaq-100 rose. The Dow Jones Industrial Average was up nearly 300 points.

Here's where US indexes stood at the 9:30 a.m. ET open on Thursday:

Worries were mounting as US legislators engaged in a tense standoff ahead of an October 18 deadline to raise the debt ceiling or default on the country's debt.

On Wednesday, both parties made some headway after Senate Minority Leader Mitch McConnell said he was willing to offer a short-term debt ceiling extension until December.

Video: Wall Street pointed toward higher open following short-term debt limit deal (CNBC)


Beyond the political drama, investors continue to anticipate when the Federal Reserve will begin tapering asset purchases amid inflationary pressures driven by a surge in commodity prices, particularly oil, and supply chain issues.

"We believe that inflation will continue to build up over the coming months, peaking close to 5% core CPI early next year before moving lower - an environment that resembles reflation more than stagflation," Gargi Chaudhuri, head of iShares investment strategy, said in a note Thursday.

The yield on the benchmark 10-year Treasury note rose to 1.55 % Thursday from 1.524% Wednesday. Yields and prices move inversely.

US jobless claims totaled 326,000 last week, the Labor Department announced Thursday, coming in below the median forecast of 348,000 from economists surveyed by Bloomberg. It also snapped a three-week streak of gains.

In cryptocurrencies, bitcoin was 3.38% higher to $54,156 after breaching $55,000 on Wednesday when Securities and Exchange Chair Gary Gensler said he has no plans to ban crypto.

Meanwhile, dogecoin spin-off shiba inu is continuing its monster rally, having risen by over 300% in a week to a $12 billion valuation, according to Coinmarketcap. For the month, it gained around 350% in a month - roughly what bitcoin has gained in a year.

Natural gas prices fell 4% after Russian leaders including President Vladimir Putin offered to stabilize the European gas market by indicating that supply could increase through Ukraine. The trend spilled over to other commodities.

West Texas Intermediate crude oil slipped 0.71%, to $76.88 per barrel. Brent crude, oil's international benchmark, fell 0.48%, to $80.69 per barrel.

Gold edged lower by 0.52%, to $1,755.04 per ounce.

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