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Wall Street Rallies On Government Reopening

Meng Meng |
October 16, 2013 | 5:53 p.m. PDT

Staff Reporter

The U.S. stock market jumped on Wednesday as Congress reached a deal to lift debt ceiling, averting a possible government default. 

The Dow Jones Industrial Average surged 200.57 points to 15325 as of 4 p.m.

S&P 500 advanced 23 points, or 1.38 percent, following the progress on the Senate Floor and NASDAQ climbed 45 point to 3839. 

With the passing of a new spending bill, a higher borrowing limit will send a promising sign to the market. The bipartisan deal includes extending the borrowing authority to February 15 and financing the government through January 5. 

The U.S Chamber of Commerce has urged both the Senate and House of Representatives to seal a deal on debt, warning that a possible default will exacerbate the deficit and spending issues.

House Speaker John Boehner agreed to compromise on the budget today. 

In a statement today, he said, “The House has fought with everything it has to convince the president of the United States to engage in bipartisan negotiations aimed at addressing our country's debt and providing fairness for the American people under ObamaCare. We will rely on aggressive oversight that highlights the law's massive flaws and smart, targeted strikes that split the legislative coalition the president has relied upon to force his health care law on the American people.” 

Republican U.S. Senator Ted Cruz also backed down today, taking back his earlier comment on defunding the Affordable Healthcare Act. 

In the past month, the fight over Obamacare has quickly escalated into a political impass on government budget, causing a temporary shutdown which furloughed thousands of federal workers.

Wary of the possible future default scenario, investors are staying away from the market with the Dow trading at a low volume of 86 million

Economists says the temporary solution have not convinced business owners of a upturning economy. 

“I am glad that Congress overcame hurdles to negotiate things business people worry about. Tax and government expenditure on social security are of a big concern to business people," said J.K Dietrich, an economist from USC Marshall School of Business. “But the point is nobody knows the future.” 

Reach Staff Reporter Meng Meng here.



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