Benchmark indexes extended weekly rally and the Nasdaq index traded near a one-year high and the S&P 500 index near a 9-month high on debt ceiling talk optimism. The yields on 2-year and 10-year Treasury notes advanced to 2-month highs after rate hike worries resurfaced.
Stocks on Wall Street extend gains for the second day in a row on the hopes that the U.S. debt ceiling talks are entering the final phase before the House vote as early as next week. Markets in Europe and Asia traded at or near record highs.
Optimism about the debt ceiling talks prevailed in early trading on Wall Street as investors await details of the agreement to avoid the catastrophic debt default.
Stocks accelerated gains on Wall Street after debt ceiling talks appear to be on track to reach an agreement and avert the looming federal government default on June 1.
Debt ceiling talks optimism lifted market sentiment on the hopes of an agreement as early as this weekend. U.S. Treasury yields trended higher and crude oil prices slightly rebounded.
U.S. lawmakers may not have enough time to approve a yet to be finalized debt ceiling agreement as president Joe Biden prepares to travel to meet leaders of G7 and Quad nations.
U.S. stocks turned lower after the latest monthly retail sales data showed stretched consumer budgets and market sentiment was dented after Home Depot issued a cautious annual outlook.
Market anxieties are growing with the lack of progress on debt ceiling negotiations as both sides defend their positions and are in no mood to compromise.
Stocks lacked direction on the final day of a volatile week as focus shifts to debt ceiling uncertainties and wider fallout from the regional banking crisis.
With receding worries of inflation and rate path, debt ceiling uncertainty is taking center stage as both parties avoid cutting outsized defense spending and subsidies for wealthy and large businesses.
Benchmark indexes turned lower after regional bank worries flared up after PacWest reported deposit outflow. Wholesale inflation index declined for the tenth month in a row after final demand for goods price index rose at a slower pace.
Headline inflation cooled in April and core inflation stayed stubbornly high, signaling well anchored inflation forces largely unaffected by ten rate hikes over the last fourteen months.
