US President Joe Biden and House Speaker Kevin McCarthy struck a deal on the federal debt ceiling over the weekend that, if approved by Congress, will avert a disastrous debt default.
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A rally in some of the world's largest technology companies drove gains in US stocks as Treasury yields fell on hopes that Congress will pass a debt-ceiling deal to head off a default.
Republican and White House negotiators are moving closer to an agreement to raise the debt limit and cap federal spending for two years, according to people familiar with the matter, as time grows short to avert a catastrophic US default.
The Nasdaq 100 rallied and chipmakers soared Thursday as a bullish sales forecast from Nvidia Corp. ignited gains in companies linked to the frenzy for artificial intelligence stocks.
A deluge of bad news swept across global markets on Wednesday, driving European stocks to the biggest loss in two months, pushing copper below $8,000 and snuffing out this year’s gains in China equities.
Investors have been demanding higher premiums to hold US debt, especially those at the highest risk of default, with little time left for politicians to find an agreement.
Federal Reserve Bank of St. Louis President James Bullard said he expects the central bank will need to raise interest rates twice more this year to quell inflation.
President Joe Biden urged his negotiators to keep pursuing a debt-limit deal after House Speaker Kevin McCarthy indicated that both sides may reach agreement as soon as this weekend to avoid a catastrophic US default.
Treasury yields climbed and stocks fluctuated on speculation the Federal Reserve will need to raise interest rates again as inflation remains elevated.
Stocks rose on hopes that a narrower group of Washington negotiators will help break a deadlock on raising the debt ceiling to avoid a US default.