Stocks Soar on Budget-Deal Hopes; Dow Posts Biggest One-Day Gain Since January
The Dow Jones Industrial Average soared more than 300 points as investors breathed a sigh of relief that lawmakers showed signs of breaking the political gridlock in Washington.</br></br>Hints of an end to the political brinkmanship which led to a partial government shutdown raised hopes that a deal to lift the federal debt ceiling could be reached in time to avoid the U.S. Treasury defaulting on debt payments.</br></br>The Dow climbed 323.09 points, or 2.2%, to 15126.07, closing near the session's highs. Thursday's advance was the biggest one-day point gain since Dec. 20, 2011 and the biggest on a percentage basis since Jan. 2, when the blue chips gained 2.3% after Congress reached a deal to avoid an earlier budget-disaster scenario, the so-called fiscal cliff.</br></br>While the big rally served to break the gloom that has been building among investors since the government shutdown began, many investors said they remain wary of jumping into the market until it's clear that a deal really is at hand. Should progress toward resolving the impasse falter, stocks could easily fall back, they said.</br></br>"We're getting signs of a thaw; it does make me feel better," said Chris Bertelsen, chief investment officer at Global Financial Private Capital, which manages $2.3 billion. "But I tend to be skeptical until there's an actual agreement."