S&P 500 up 1% on hopes for Washington breakthrough
BNN Bloomberg
The stock market climbed on speculation that a narrower group of Washington negotiators will break a deadlock on raising the U.S. debt ceiling and avoid an unprecedented default.
Equities halted the recent trading lull, with gains in the S&P 500 topping one per cent and the Nasdaq 100 hitting the highest since August. Treasuries dropped, with yields on 10-year notes approaching 3.6 per cent. President Joe Biden expressed confidence there will be no default, and House Speaker Kevin McCarthy said reaching an agreement this week is “doable.”
“We don't want to get too excited as the two sides reportedly remain far apart,” said Win Thin, global head of currency strategy at Brown Brothers Harriman. “However, we get the sense that there is a real effort to avert a debt ceiling catastrophe as the X-date of June 1 is fast approaching. Stay tuned.”
JPMorgan Chase & Co.'s chief Jamie Dimon said the U.S. government “probably” will not default on its debts. He joined other top executives of major banks in a meeting with Senate Majority Leader Chuck Schumer to discuss the debt limit.
