Dow surges 400 points as Biden and lawmakers inch closer to a debt ceiling deal

President Joe Biden and House Speaker Kevin McCarthy both said Tuesday that they did not see a default happening.
  • US stocks jumped Wednesday as lawmakers made progress on debt ceiling negotiations.
  • President Biden and members of Congress are getting closer on a deal after weeks of deadlock.
  • The major indexes all rose more than 1% during the session.

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US stocks jumped on Wednesday as investors grew optimistic that a deal over the debt ceiling could soon be in sight.

Major indexes climbed steadily during the session, with markets cheering hopeful remarks from President Joe Biden and House Speaker Kevin McCarthy, who both stated they do not believe the US will default on its debt.

“I’m confident we’ll get the agreement on the budget, that America will not default on its debt,” Biden said on Wednesday morning.

While an actual default was widely thought to be unlikely, the possibility of such a scenario has weighed on markets in recent weeks. Top executives have loudly warned of a catastrophe striking the financial system should the government default.

Top economist Mohamed El-Erian tweeted on Tuesday that deadlock in Washington is harming the country’s credibility at a time when the US should be re-establishing its role on the world stage.

Here’s where US indexes stood as the market closed at 4 p.m. on Wednesday:

Here’s what else is happening:

In commodities, bonds, and crypto:

  • Oil prices jumped. West Texas Intermediate crude rose 2.57% to $72.68 per barrel. Brent, the international benchmark, was up 2.58% to $76.81.
  • Gold fell 0.3% to $1986.40 per ounce.
  • The 10-year Treasury yield was up two basis points to 3.57%.
  • Bitcoin rose 1.5% to $27,388.

Source: https://markets.businessinsider.com/news/stocks/stock-market-news-today-debt-ceiling-biden-mccarthy-economy-sp500-2023-5?op=1

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