A deep sell-off in U.S. stocks eased Tuesday as investors assessed Washington’s last-minute legislative deal to avoid a debt default and showed relief that the outcome of negotiations wasn’t worse.
The developments in Congress also offered at least a modicum of relief for Asian markets as further deterioration in the nation’s debt outlook could have hurt sentiment already tepid following Sino-U.S. trade tensions and easing global growth.
U.S. stocks extended their overnight gains, with the Nasdaq Composite index on track for a gain of almost 1 percent for the day, and its highest close since late November. The S&P 500 and Dow Jones industrial average also surged, while the blue-chip average is now within 0.6 percent of an all-time high.
Meanwhile, broader gains in the major Asian indexes following overnight Wall Street gains were aided by robust U.S. industrial and housing data on Tuesday. China’s benchmark indexes all bounced higher by about 0.7 percent.
The gains in U.S. stocks were led by a rally in financial shares. Treasury yields also eased after climbing on Monday, with the benchmark 10-year Treasury yield hovering around 3.30 percent.