Investing.com - U.S. stocks rose on Thursday after investors shrugged off a government shutdown and applauded improving manufacturing data.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.41%, the S&P 500 index rose 0.80%, while the Nasdaq Composite index jumped 1.23%.
Despite a government shutdown that took effect earlier, stocks rose, mainly on expectations for an end to the fiscal impasse to come about soon.
Talk the shutdown may prompt the Federal Reserve to keep its monthly USD85 billion bond-buying program in place to offset any damage the shutdown may inflict on recovery boosted prices as well.
Still, lingering concerns the government may stay closed for politicians to debate spending as well as the government's debt ceiling later this month capped gains.
Congress must lift the government's debt ceiling to avoid default.
Many investors shrugged off the government closure on sentiments that similar impasses over the last two years have come and gone with politicians eventually finding a way out before the economy suffers lasting damage.
Still, better-than-expected manufacturing data allowed for a rather bullish sentiment during the trading day, the first of the month.
The Institute for Supply Management reported earlier that its manufacturing purchasing managers’ index rose to 56.2 in September from 55.7 in August.
Analysts had expected the index to decline to 55.0.
On Monday, the Federal Reserve Bank of Dallas reported that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls to remain unchanged.
Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading
In other news, Apple shares surged 2% on reports that billionaire investor Carl Icahn was pushing hard for a USD150 billion buyback.
Icahn met with Apple CEO Tim Cook on Monday.
Leading Dow Jones Industrial Average performers included Merck, up 2.00%, UnitedHealth Group, up 1.24%, and General Electric, up 0.79%.
The Dow Jones Industrial Average's worst performers included Wal-Mart Stores, down 0.74%, Intel, down 0.70%, and Cisco, down 0.60%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 rose 1.18%, France's CAC 40 rose 1.28%, while Germany's DAX 30 rose 1.10%. Meanwhile, in the U.K. the FTSE 100 finished down 0.03%.
On Wednesday, the U.S. is to release the ADP report on private-sector nonfarm payrolls, which is often seen as a precursor to the closely watched government report on Friday.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.41%, the S&P 500 index rose 0.80%, while the Nasdaq Composite index jumped 1.23%.
Despite a government shutdown that took effect earlier, stocks rose, mainly on expectations for an end to the fiscal impasse to come about soon.
Talk the shutdown may prompt the Federal Reserve to keep its monthly USD85 billion bond-buying program in place to offset any damage the shutdown may inflict on recovery boosted prices as well.
Still, lingering concerns the government may stay closed for politicians to debate spending as well as the government's debt ceiling later this month capped gains.
Congress must lift the government's debt ceiling to avoid default.
Many investors shrugged off the government closure on sentiments that similar impasses over the last two years have come and gone with politicians eventually finding a way out before the economy suffers lasting damage.
Still, better-than-expected manufacturing data allowed for a rather bullish sentiment during the trading day, the first of the month.
The Institute for Supply Management reported earlier that its manufacturing purchasing managers’ index rose to 56.2 in September from 55.7 in August.
Analysts had expected the index to decline to 55.0.
On Monday, the Federal Reserve Bank of Dallas reported that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls to remain unchanged.
Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading
In other news, Apple shares surged 2% on reports that billionaire investor Carl Icahn was pushing hard for a USD150 billion buyback.
Icahn met with Apple CEO Tim Cook on Monday.
Leading Dow Jones Industrial Average performers included Merck, up 2.00%, UnitedHealth Group, up 1.24%, and General Electric, up 0.79%.
The Dow Jones Industrial Average's worst performers included Wal-Mart Stores, down 0.74%, Intel, down 0.70%, and Cisco, down 0.60%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 rose 1.18%, France's CAC 40 rose 1.28%, while Germany's DAX 30 rose 1.10%. Meanwhile, in the U.K. the FTSE 100 finished down 0.03%.
On Wednesday, the U.S. is to release the ADP report on private-sector nonfarm payrolls, which is often seen as a precursor to the closely watched government report on Friday.