The Dow Jones rallied shortly after the opening bell and US stock exchanges opened higher on Friday, a day after Senate passed the debt ceiling bill.
The blue-chip Dow surged almost 400 points, or 1.2%, to 33,460 at 9.48 a.m. EDT. The S&P 500 also added 37 points, or 0.9%, to 4,258.
The tech-heavy Nasdaq increased 88 points, or 0.68%, to 13,190.
After a vote of 314-117 late Wednesday in the House of Representatives, the legislation was passed by the Senate with a vote of 63-36 late Thursday. It now heads to President Joe Biden’s desk to be signed into law.
The bill, which suspends the $31.4 trillion cap on the federal government’s borrowing limit through January 2025, will prevent the world’s biggest economy to default on its debt obligations.
With investors’ optimism and falling uncertainty, the VIX volatility index, also known as the fear index, fell 3.8% to 15.06.
The 10-year US Treasury yield, meanwhile, rose 1.4% to 3.652%.
The dollar index was slightly up 0.03% to 103.59, while the euro decreased 0.16% to $1.0745 against the greenback.
Precious metals were in negative territory, with gold trimming 0.7% to $1,963 per ounce and silver falling 0.6% to $23.72.
Oil prices gained more than 2.5%, with global benchmark Brent crude at $76.15 per barrel and US benchmark West Texas Intermediate at $71.90.
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