NEW YORK, OCT. 1 -- American business gave a generally warm welcome to the new federal budget package today, while both stock and bond markets rallied robustly.

"It's the first significant bite out of the deficit in eight years," said James R. Jones, chairman of the American Stock Exchange and a former chairman of the House Budget Committee.

"While individual industries and corporations may have good reason to criticize specific provisions of the budget deal, there's enough serious deficit reduction in the package for all of us -- business included -- to support it," said Drew Lewis, chairman of the Business Roundtable, an association of 200 top executives of major corporations.

But the enthusiasm was muted by widespread skepticism over whether the deal would really bring the federal budget under control.

"It has teeth in it, but some of them are false," said Salomon Brothers Inc. economist Robert DiClemente at the firm's morning staff briefing here.

Encouraged both by a sharp drop in oil prices as well as the deficit reduction plan, the Dow Jones industrial average rose 63.36 points to 2515.84 in the biggest one-day gain in more than a month. The breadth of the rally was impressive, with advancing issues outpacing declines by a ratio of nearly 3 to 1 on heavy volume of 202 million shares.

"I like it," said chief trader Jon Groveman at Ladenburg Thalmann, referring to the sharp, broad-based rally. "I think the market's bought itself some time on the upside. The bulls are finally taking the ball and running with it."

Much of today's rally was fueled by expectations that the Federal Reserve Board would make good on its promise to lower interest rates following a budget compromise. The bond market apparently made a similar calculation as the benchmark 30-year Treasury bond gained 31/32 and its yield -- which moves in the opposite direction from price -- fell to 8.85 percent from 8.94 percent. "Hopefully, it {the deal} will give enough camouflage to the Fed to enable them to lower interest rates," said W. Anthony Hitschler, president of Brandywine Asset Management Inc. in Wilmington, Del.

But traders emphasized that the budget deal was only one of several factors that buoyed the stock market today. The market may have been poised for a rally simply because stock prices had recently dropped so much that many shares were selling at bargain prices. Another major factor in today's surge was the drop of $2.42 a barrel in the price of oil in the commodity futures markets, where a barrel of November crude closed the day at $37.09.

"All these positive things coming together at one point resulted in a kind of technical bounce," said Joseph A. DeMarco, managing director for securities trading at Marinvest Inc. in New York.

Not all business groups were pleased by the budget pact, most notably the U.S. Chamber of Commerce, which said it was "extremely disappointed and concerned by the enormous tax increases in the budget package at a time when the economy is heading for a slump."

Others complained that the estimated budget deficits for the next five years are based on unrealistically optimistic projections for economic performance. "Even with an agreement in Congress, we are still looking at a 1991 budget deficit of over $250 billion," William A. Schreyer, chairman of Merrill Lynch & Co.

But there was no doubting that the dominant emotion arising from Wall Street today was relief that a genuine budget crisis had been averted.

Roger C. Altman, vice chairman of the Blackstone Group and a former assistant Treasury secretary, summed up the view of many on Wall Street with a backhanded compliment: "It's better than I thought it would be. I was skeptical that they would reach agreement."

Among stocks benefiting from today's broad advance, Procter & Gamble led the gainers, rising 4 1/8 to 77. Boeing advanced 2 5/8 to 44 1/4, IBM added 2 5/8 to 109, Coca-Cola gained 2 1/8 to 41 5/8, Minnesota Mining rallied 2 3/8 to 79 1/2 and Philip Morris moved up 2 1/2 to 47 3/4.

Falling oil prices translated into falling oil issues. Among the major producers, Texaco lost 7/8 to close at 60 3/8, Amoco dropped 1/2 at 56 1/4 and Atlantic Richfield fell 2 3/8 to 132. Oil service companies Halliburton and Schlumberger both fell nearly 2 points as well.

The Dow transports rose 31.80 to close at 873.15 as UAL Corp. gained 6 1/8 to 103 3/8 and as other airlines and rails lent support. The interest-sensitive utilities soared 4.77 to 203.34.

Among broad stock indexes, the Standard & Poor's 500 closed up a sharp 8.89 at 314.94. The NYSE Composite was up 4.37 at 172.22, the Value Line up 4.44 at 230.81 and the battered Nasdaq Composite up 10.14 at 354.65. The Amex Market Value index lagged conspicuously with a mere 0.71 gain to 308.44.