U.S. stocks rose for the week, sending the Standard & Poor’s 500 Index to a record, as Congress reached a deal to end the budget standoff and speculation grew that the Federal Reserve will maintain monetary stimulus.
Google Inc. led the week’s rally in the S&P 500, surging 16 percent and topping $1,000 for the first time after posting better-than-forecast earnings. Morgan Stanley climbed 6.2 percent as profit beat analysts’ estimates amid a gain in equity-trading revenue. FedEx Corp. jumped to a record after announcing its biggest repurchase program ever. International Business Machines Corp. tumbled 6.7 percent as sales fell for the sixth straight quarter.
The Standard & Poor’s 500 Index rose 2.4 percent to 1,744.50 over the five days, for the biggest weekly gain since July. The Dow Jones industrial average advanced 162.54 points, or 1.1 percent, to 15,399.65. The 30-stock gauge is still 1.8 percent below its record reached Sept. 18. The Nasdaq Composite Index jumped 3.2 percent to 3,914.28, the highest level since September 2000.
“It was certainly good news that the budget was extended and the government didn’t default on its debt,” Jack Ablin, who helps oversee $66 billion as chief investment officer at BMO Private Bank, said in a phone interview from Chicago. “Tapering will likely be delayed until at least well into the first quarter. That’s largely what’s fueling equity prices now.”
Stocks surged during the week as Congress moved toward an agreement to end a partial government shutdown that began Oct. 1. President Barack Obama signed a bill to fund the government through Jan. 15 and extend the borrowing authority through Feb. 7.
