NEW YORK CITY: US stocks Thursday surged on progress towards a potential deal in Washington to prevent a debt default, recovering a hefty portion of their losses since the partial government shutdown began.
By the closing bell, the Dow Jones Industrial Average had soared 322.06 (2.18 percent) to 15,125.04, almost exactly the level the Dow stood at on the eve of the October 1 shutdown.
The broad-based S&P 500 jumped 36.05 (2.18 percent) to 1,692.45, while the tech-rich Nasdaq Composite Index added 82.97 (2.26 percent) at 3,760.75.
A breakthrough in the political logjam seemed at hand when House of Representatives Speaker John Boehner offered to extend the US borrowing authority for six weeks.
President Barack Obama is scheduled to meet with Republican leaders Thursday. The Boehner proposal would not end the government shutdown.
Thursday's developments suggest "both sides appreciate the gravity of a default," said Jack Ablin, chief investment officer at BMO Private Bank.
"It's not worth sending our country into a tailspin over ideological differences. I think investors are breathing a sigh of relief."
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