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

10/16/2013
ASSOCIATED PRESS
Budget-Battle-90

A view of the U.S. Capitol building on Tuesday, Oct. 15, 2013 in Washington. The partial government shutdown is in its third week and less than two days before the Treasury Department says it will be unable to borrow and will rely on a cash cushion to pay the country's bills. (AP Photo/ Evan Vucci)

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.