Bets on Washington deal trigger Wall Street rally
NEW YORK (REUTERS) - Major United States (US) stock indexes posted their strongest rally in more than nine months on Thursday after signs of progress in negotiations to raise the US debt limit, at least temporarily.
The market rally left the S&P 500 less than 2 per cent away from its record closing high set three weeks ago, with traders now focused on an earnings season that begins in earnest on Friday with results from top banks JPMorgan and Wells Fargo.
House Republican leaders acted to break a logjam in negotiations by proposing a bill to raise the federal government's debt limit without attachments.
The move was a significant shift for Republicans, who had tried to use the must-pass legislation to extract concessions from Democrats on spending and gutting the new healthcare law known as Obamacare.