NEW YORK, Oct. 14 (Xinhua) -- U.S. stocks reversed earlier losses and closed in positive territory Monday amid optimism that there would be a fiscal deal in Washington to reopen the government and avoid a potential default.
The Dow Jones Industrial Average advanced 64.15 points, or 0.42 percent, to 15,301.26 points. The S&P 500 increased 6.95 points, or 0.41 percent, to 1,710.15 points. The Nasdaq Composite Index rose 23.40 points, or 0.62 percent, to 3,815.27 points.
With no major economic data and earnings reports from notable companies due Monday, investors are closely watching the negotiations between Democrats and Republicans in Congress on how to reopen the government and raise the debt ceiling.
The market drifted higher after Senate Majority Leader Harry Reid said early Monday afternoon he is "very optimistic" that Senate leaders will reach a deal.
The White House reportedly announced later in the afternoon that a meeting between U.S. President Barack Obama and Congressional leaders, which was originally scheduled for 3 p.m. local time, has been postponed to allow Senate leaders "time to continue making progress" towards a resolution.
Despite fiscal uncertainties, investors are still reluctant to bet against a last-minute deal which often occurs in Washington, thus driving up the market.
U.S. Treasury Secretary Jacob Lew has told the Congress that the federal government will reach its debt ceiling of 16.7 trillion U.S. dollars by Oct. 17 and that failure to raise it would lead to a catastrophic default.
The stock trading volume is expected to be thin on Columbus Day, with some traders off work.
On corporate earnings, U.S. banking giants Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley are scheduled to report their quarterly earnings this week.
In other markets, the U.S. dollar fell against major currencies Monday amid the ongoing government shutdown and impending debt ceiling deadline. In late New York trading, the euro gained to 1. 3573 dollars from 1.3553 dollars of the previous session, and the British pound increased to 1.5992 dollars from 1.5960 dollars. The dollar bought 98.45 Japanese yen, lower than 98.48 yen of the previous session.
U.S. oil price gained as White House said Obama will meet with congressional leaders. Markets hope that lawmakers could reach a deal before the credit default takes effect in three days.
Light, sweet crude for November delivery increased 39 cents to settle at 102.41 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery lost 24 cents to close at 111.04 dollars a barrel.
Gold futures on the COMEX division of the New York Mercantile Exchange rose, bottoming out of a three-month low. The most active gold contract for December delivery increased 8.4 dollars, or 0.66 percent, to settle at 1,276.6 dollars per ounce.