Stocks were lifted by the prospect of an agreement in the Senate to avoid the U.S. defaulting on its debts.
U.S. stocks rose on Thursday, adding to Wednesday’s gains, as investors reacted with relief to the prospect of an agreement in the Senate to raise the federal borrowing limit and pull the country from the brink of a debt default. The S&P 500 gained more than 1.2 percent in early trading, while the Nasdaq composite was up 1.4 percent. European stock indexes also rallied on Thursday, rebounding from a sharp decline the day before. The Stoxx Europe 600 was up 1.2 percent. Senator Mitch McConnell of Kentucky, the minority leader, said on Wednesday that Republicans would allow Democrats to vote on a short-term extension after weeks of disagreement over raising the debt ceiling.
