Investing.com – U.S. stocks rose on Wednesday, as investors cheered news that President Donald Trump agreed to raise the debt ceiling and extend government funding through Dec.15, avoiding government shutdown.
The Dow Jones Industrial Average closed higher at 21,807. The S&P 500 closed 0.31% higher while the Nasdaq Composite closed at 6393.31, up 0.28%.
"We have an extension, which will go out to December 15th. That will include debt ceiling, that will include (short-term spending for the coming fiscal year) and it will include Harvey, the amount of money to be determined," Mr Trump told reporters aboard Air Force One.
The positive news overshadowed renewed geopolitical tensions after the US asked the UN Security Council to freeze the assets of North Korea’s leader Kim Jong-un and slap an oil embargo on the country, according to a US-drafted resolution circulated on Wednesday.
On the economic data front, investors mulled over a rebound in services sector activity in August.
The Institute for Supply Management's index registered 55.3 in August. This was a reversal from a decline in July, when the index hit 53.9.
A reading above 50 for the index indicates expansion in the service sector, and a reading below 50 indicates contraction.
Meanwhile, a surge in energy underpinned the positive day on Wall Street, as crude oil futures continued their post-Harvey rally ahead of inventory data from the Energy Information Administration due Thursday.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Home Depot Inc (NYSE:HD) up 2.4%, Chevron Corporation (NYSE:CVX) up 2.1% and Intel Corporation (NASDAQ:INTC) up 2.1%
United Technologies Corporation (NYSE:UTX) down 1.4%, Caterpillar Inc (NYSE:CAT) down 1.1% and Bank of America Corp (NYSE:BAC) down 1%, were among the worst Dow performers of the session.