Marketbites: U.S. Debt Negotiations Move Forward
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks rose Wednesday as investors hoped congressional leaders and President Joe Biden could come to a deal on the U.S. debt ceiling and avoid a catastrophic default. At the conclusion of a meeting between the president and congressional leaders Tuesday, House Speaker Kevin McCarthy said that a “better process” is now in place for further talks, saying it’s “possible to get a deal by the end of the week.” The White House said that Biden canceled a second leg of an upcoming international trip to focus on the negotiations.
“Now we have a structure to find a way to come to a conclusion,” McCarthy told CNBC’s “Squawk Box” on Wednesday. “I think at the end of the day we do not have a debt default. I think we finally got the president to agree to negotiate.” Concerns over a potential default have weighed on markets recently. The Dow is down more than 2% this month, including a 1% decline on Tuesday.
Regional bank shares rebounded on Wednesday, helping market sentiment, as Western Alliance Bancorp detailed improving deposit growth. The SPDR S&P Regional Bank ETF jumped 7.6%, while Western Alliance soared 10.2%.
Chart of the Day:
Americans boosted their retail spending in April for the first time in months, a sign of consumers’ continued resilience despite high inflation and rising interest rates. Consumers spent more on autos and dining out last month, while boosting online purchases. They cut spending on gasoline and on big-ticket purchases such as appliances and furniture.
Source: WSJ
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