“Republicans and Democrats in Congress opened the door to a temporary solution to the debt ceiling issue, saying they would consider a stop-gap measure extending the borrowing limit until December. “ “A Senate vote might follow today. While the deal merely postpones the default risk until the year-end, it at least removes another downside risk to market sentiment in the near-term. US treasury yields retreated somewhat from their highs.”
US closes higher amid debt ceiling talks
Major United States stock markets closed higher on Wednesday as the debate on the debt ceiling continued. President Joe Biden met with business leaders and CEOs to discuss the matter, with chief officers of Nasdaq and JPMorgan Chase warning against the dangers of defaulting, and Secretary of the Treasury Janet Yellen saying it could “cause a recession.” Notably, Biden and Xi agreed to meet virtually by the end of the year, with both sides reporting willingness to avoid conflict. The Dow Jones rose 0.30% as Microsoft Corp increased 1.51%, while S&P 500 gained 0.41% with Enphase Energy jumping 4.19%. The Nasdaq 100 ended the session 0.63% in the green led by Marvell Technology gaining 7.34%. The euro dropped 0.34% against the dollar to trade for $1.15578 at 4:06 pm ET. NN: I am amendment they will raise the debt ceiling they always do. So to me this is not a selling moment but a bear trap. It is rare for me to stand aside this long.But it does happen. In reviewing my trade ledger i found something interesting. Before most every major wipe out its has not been uncommon for me to stand aside for a time. It happened in 1987, 2001 and 2008….. To be clear here i expect a relief rally when they announce a deal on the debt ceiling. And another leg up when they announce the stimulus bill passing. Then we will start operations…