NEW YORK - US stocks jumped the most since January and Treasury bill rates tumbled on optimism lawmakers will reach agreement to raise the debt ceiling and avoid a default. Gold fell while oil rallied.
The Standard & Poor's 500 Index soared 2.1 per cent at 3:13 pm in New York for the biggest advanced since Jan. 2. The Stoxx Europe 600 Index climbed 1.7 per cent, rebounding from a one-month low. Rates on Treasury bills scheduled to mature on Oct. 17 dropped for the first time in six days. The dollar appreciated for a third day against the yen. Brent oil added 2.3 per cent after Libya's prime minister was detained and released.
The White House endorsed a short debt-limit increase with no policy conditions attached, signaling potential support for House Republicans' plan for a month-long reprieve from a default. Treasury Secretary Jacob J. Lew warned that "uncertainty" over the debt limit is starting to stress financial markets, speaking in testimony to the Senate Finance Committee a week before the government runs out of its borrowing authority on Oct. 17.