BUSINESS

Stock market recovers on hope for progress in debt talks in Washington

10/14/2013 04:15 EDT | Updated 12/14/2013 05:12 EST
NEW YORK, N.Y. - Stocks are ending higher following signs that Washington was moving closer to an agreement to avoid a debt default and re-open the federal government.

The stock market started lower Monday after negotiations between the White House and Congressional Republicans appeared to break down over the weekend.

Stocks erased those losses in early afternoon trading after Senate leaders said they were making progress toward a deal.

The Dow Jones industrial average rose 64 points, or 0.4 per cent, to close at 15,301. The index was down as much as 100 points earlier.

The Standard & Poor's 500 rose seven points, or 0.4 per cent, to 1,710. The Nasdaq composite rose 23 points, or 0.6 per cent, to 3,815.

Bond trading was closed for Columbus Day.

Trading volume was very light at 2.6 billion shares.