NEW YORK, New York – After the US Congress called a truce on the debt-ceiling standoff, US stocks today started to climb, with technology stocks leading the rally.
The debt-ceiling truce between the Congress brought investors at ease with the potential of future debt defaults later this month.
According to US Senate Leader Chuck Schumer, the Senate is looking to raise the borrowing authority to $480 billion by Saturday.
However, the sudden truce in this decision allowed markets to believe that Washington is starting to lead towards rationality in understanding the possibility of paying off its debts.
As a result of these current events, the US stocks today saw a slight move, especially in Microsoft Corp., Amazon.com, and Apple. These companies rose between 1% and 1.8%, giving the S&P 500 and NASDAQ the much-needed boost.
Furthermore, all 11 sectors of the S&P 500 also saw a jump of more than 1%. The Materials saw the greatest gains (2%) among these sectors, followed by the healthcare and consumer discretionary sectors.
Consequently, Wall Street’s fear gauge also fell significantly to a lower low since September 24, 2021.
The Dow Jones Industrial Average increased by 1.49% (about 512.92 points), while the S&P increased by 1.41% or 61.61 points. The NASDAQ increased by 1.68% percent, or by 243.65 points.
Greg Swenson, the founding partner of Brigg Macadam, showed opportunistic sentiments with the near-term market progress. According to Swenson, the market already saw dramatic corrections, offering buyers a dip-buying opportunity for potential short-term trading gains.