Stocks surge after Senate reaches deal on U.S. debt

10/16/2013
ASSOCIATED PRESS
Major indexes climbed more than 1 percent after Senate deal on U.S. shutdown and debt crisis.
Major indexes climbed more than 1 percent after Senate deal on U.S. shutdown and debt crisis.

NEW YORK — Stocks surged on Wall Street today after Senate leaders reached a deal that would avoid a U.S. default and reopen the government after 16 days of being partially shut down.

The Dow Jones industrial average jumped 205 points, or 1.4 percent, to close at 15,373.

The Standard & Poor’s 500 index rose 23 points, or 1.4 percent, to 1,721 points. The S&P 500 is just four points below the all-time high it reached on Sept. 18.

The Nasdaq composite rose 45 points, or 1.2 percent, to 3,839.

Yields on Treasury bills fell sharply as investors became less nervous about a potential default by the government.

The gains were broad. Four stocks rose for every one that fell on the New York Stock Exchange. Trading volume was heavier than usual.