Stocks Ended Higher on Debt Limit Deal

U.S. stocks closed slightly higher on Wednesday after congressional leaders and President Donald Trump agreed to extend the debt limit deadline and fund the government through mid-December. The Dow Jones Industrial Average rose 54.33 points, or 0.25%, to 21,807.64. The S&P 500 climbed 7.69 points, or 0.31%, to 2,465.54. The Nasdaq Composite gained 17.74 points, or 0.28%, to 6,393.31.

The U.S. oil benchmark closed at a four-week high Wednesday. West Texas Intermediate U.S. crude oil for October rose 50 cents, or 1%, to close at $49.16 a barrel. Brent crude gained 82 cents, or 1.5%, to end at $54.20 a barrel.

President Donald Trump, siding with Democrats over fellow Republicans, reached a deal with congressional leaders of both parties to extend the U.S. debt limit until Dec. 15 as well as avoid a government shutdown and provide disaster relief.

The Institute for Supply Management (ISM) said its non-manufacturing activity index increased 1.4 points to 55.3 in August, rebounding from an 11-month low in the prior month. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity.

The U.S. economy expanded at a modest to moderate pace in July through mid-August but signs of an acceleration in inflation remained slight, the latest survey conducted by the Federal Reserve showed on Wednesday.