Bonds & Stocks
Equity markets rose ahead of a crucial meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy to iron out road blocks in debt-ceiling negotiations. The S&P 500 gained, led by communication stocks, while the tech-heavy Nasdaq 100 was also higher. Chipmakers were under pressure and Micron Technology Inc. sank 4.4% after China said the company’s products failed a cybersecurity review.
Economy
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. “I think we’re going to have to grind higher with the policy rate in order to put enough downward pressure on inflation and to return inflation to target in a timely manner,” he said Monday during a moderated discussion at an event in Fort Lauderdale, Florida.
World
SoftBank Group Corp. is working on plans to become a lender in the $1.5 trillion world of private credit. Senior investors at the Japanese firm have spoken to market participants about directly lending to technology firms, and touted the possibility of deploying as much as $1 billion via SoftBank Investment Advisers, according to people with knowledge of the matter.