US stocks rally, with the Dow climbing 337 points on debt ceiling optimism

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Stocks in the US ended higher on Thursday after investors celebrated an agreement for a temporary increase to debt ceiling.

The benchmark 10-year Treasury note yield rose to 1.575% on Thursday.

Oil and Bitcoin traded higher.

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The announcement by legislators that they would raise the federal borrowing limit to December was a positive sign for investors and helped the US stock market rally on Thursday. This will prevent a potentially disastrous default on its debt.

The benchmark S&P 500 edged up, while the tech-heavy Nasdaq ticked up. The Dow Jones Industrial Average gained TK points.

Here are the US indexes at 4:00 p.m. ET closes on Thursday

"The outlook for 2022 is still optimistic given that markets expect Democrats to eventually deliver infrastructure spending and President Biden’s economic plan by December," Edward Moya (senior equity analyst at Oanda) stated in a note.

He said that Republican Senator Mitch McConnell’s chess move was "brilliant", as it puts all of the pressure on the Democrats. Moya said that this increases the chances that Democrats will run out of time to increase tax and spending.

Investors also try to predict when the Federal Reserve will start tapering asset purchases in response to inflationary pressures.

Gargi Chaudhuri (head of iShares' investment strategy) stated in a Thursday note that "we believe that inflation will continue building up over the next months, peaking at 5% core CPI soon after that before moving lower – an environment that resembles stagflation more than reflation."

The benchmark 10-year Treasury note yield rose to 1.575% on Thursday, from 1.524% Wednesday. Prices and yields move in the opposite direction.

The Labor Department reported that the US's jobless claims were 326,000 last week. This was below the median forecast of 348,000 by Bloomberg economists. The Labor Department also ended a three-week streak that saw gains.

After surpassing $55,000 on Wednesday, bitcoin traded 1.55% lower in cryptocurrencies to $54,121. JPMorgan stated in a note that bitcoin's rally of nearly 35% over the last week is due to investors reconsidering its appeal as an inflation hedge.

Coinmarketcap reports that Dogecoin spinoff shiba inu has continued its massive rally. It rose by more than 300% in a single week to a valuation of $12 billion. It has increased by 350% per month, which is roughly the same as bitcoin's gains in a single year.

Volt Equity's ETF was recently approved by the US Securities and Exchange Commission. It aims to track companies who hold large amounts of bitcoin-related assets or make a significant amount of revenue or profit from it.

According to Reuters, oil prices rose after the US stated that it would not release its emergency crude reserves in order to counter rising gas prices.

West Texas Intermediate crude oil increased as high as 1.38% to $7.50 a barrel. Brent crude oil, the international benchmark for oil, rose 1.32% to $82.15 per barrel.

The gold price fell by 0.4% to $1,755.89 an ounce