Standard & Poor's 500 index, which is one of the most comprehensive and widely followed indicator of US financial markets, recorded a strong increase to record closing high in the first trading day after the US congress agreed to a deal to reopen the government after agreeing to increase debt ceiling of the US.

The S&P 500 recorded an increase of 11.61 points, or 0.7%, to close at 1,733.15, which is higher than the previous record of 1,725.52 achieved on 18 September, 2013. The index also touched an intraday high of 1,733.45 during the day as optimism returned to the markets. On the other hand, the Dow Jones industrial average fell 2.18 points to 15,371.65 as Goldman Sachs, IBM and other major U. S. companies recorded weak earnings.

The US Congress and President Obama have reached budget agreement on Wednesday, bringing an end to the partial shutdown of the US government and paving the way for reopening of the government agencies and departments. The deal allowed the world's largest economy to avoid the threat of a debt default that many feared could start a new recession in the global economy. There are serious concerns over government's borrowing authority and the risk of another partial shutdown.

According to Standard & Poor's, the US economy has lost about 0.6 percentage point of the annual growth rate due to the shutdown during the October-December quarter.