Stocks - Dow Surges on Government Shutdown Deal
Investing.com - Wall Street opened higher on Tuesday as Republican and Democratic lawmakers reached a deal to avoid another government shutdown.
The S&P 500 rose 21 points, or 0.78%, as of 9:39 AM ET (14:39 GMT), while the Dow gained 216 points, or 0.87%, and the tech-heavy Nasdaq Composite increased 57 points, or 0.79%.
The deal is short of the $5.7 billion that U.S. President Donald Trump wanted for a border wall and would still need to pass both the House and Senate before being signed into law.
While it’s uncertain if Trump would sign the deal, investors are taking the news optimistically.
"What investors are taking from this is that the government stays open, whether or not Trump signs on the deal is secondary," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Tesla (NASDAQ:TSLA) was among the top gainers, rising 1.2%, while Netflix (NASDAQ:NFLX) rose 1.2% and Alphabet (NASDAQ:GOOGL) jumped 1.8%.
Under Armour (NYSE:UAA) was up 2.2% after the company’s earnings came in higher than expected. Chegg (NYSE:CHGG) surged 8% after its earnings topped guidance, while Coty (NYSE:COTY) jumped 10% after JAB offered to acquire additional shares at a price of $11.65 per share.
Meanwhile, Aurora Cannabis (NYSE:ACB) slipped 1.8% after the company's second-quarter results missed the consensus, while Shopify (NYSE:SHOP) fell 2.3% and Coca-Cola (NYSE:KO) inched down 0.14%.
In commodities, gold futures inchd up 0.05% to $1,312.55 a troy ounce, while crude oil jumped 2.67% at $53.81 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.11% to 96.745.
-- Reuters contributed to this report.
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