US stocks rise again on hopes of Washington deal

NEW YORK CITY: US stocks rallied for a second straight session Friday on rising optimism about a Washington deal to avert a US debt default.

At the closing bell, the Dow Jones Industrial Average jumped 110.14 (0.73 percent) to 15,236.21.

The broad-based S&P 500 rose 10.56 (0.62 percent) to 1,703.12, while the tech-rich Nasdaq Composite Index tacked on 31.13 (0.83 percent) to reach 3,791.87.

Investor anxiety eased Thursday after Republican leaders offered President Barack Obama a short term extension of the US government's borrowing authority so as to stave off a possible debt default.

By Friday, there was still no deal, but markets appeared encouraged by continued talks.

"Yesterday was like the best day of the year and today is a good, strong follow-on," said Greg Peterson, director of investment research at Ballentine Partners.

"Everybody's pricing in that we'll have some kind of agreement," said Anthony Conroy, a trader at BNY ConvergEx Group.

Earnings season began picking up in earnest with reports from Dow component JPMorgan Chase and Wells Fargo. A score of additional reports will follow in the next few weeks. (AFP)