U.S. stocks rallied strongly on Thursday, propelled by optimism surrounding a bipartisan agreement to raise the debt ceiling and end the government shutdown. The deal, which extends the nation’s borrowing authority and funds the government through early next year, provided a significant boost to investor confidence.

Market Performance

The S&P 500 index jumped 1.4%, its best performance since September 12th. The Dow Jones Industrial Average climbed 1.1%, while the Nasdaq Composite rose 1.8%. All ten sectors within the S&P 500 experienced gains, led by consumer discretionary and technology stocks.

Key Drivers

• Debt Deal: The resolution of the debt ceiling crisis removed a major overhang on the market.
• Economic Data: Positive economic data, including a decline in weekly jobless claims, also contributed to the rally.
• Earnings Season: Ongoing earnings reports, while mixed, generally supported the positive sentiment.

Analysts noted that the market’s reaction reflected relief that a potential default had been averted. However, some cautioned that the underlying economic issues remain and could weigh on performance in the future.