BUSINESS

Stock market rallies after Senate leaders reach deal to avoid a default on US government debt

10/16/2013 04:12 EDT | Updated 12/16/2013 05:12 EST
NEW YORK, N.Y. - Stocks are surging on Wall Street 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 per cent, to close at 15,373 Wednesday.

The Standard & Poor's 500 index rose 23 points, or 1.4 per cent, 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 per cent, 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.