The main stock indices closed in the green this Wednesday, May 17, after Western Alliance to lead a rebound among regional banks amid cautious optimism about a possible breakout of the impasse in Washington on the nation’s debt limit and that in the previous day all the indices closed in red.
The Dow Jones Industrial Average rose 1.2%, S&P 500 gained 1.2%; and the Nasdaq Composite was up 1.3%.
Shares of regional banks rose, led by a rise of 10.2% of Western Alliance Bancorp. While, PacWest Bancorp rose 21.7%, Comerica Inc climbed 12.3% and Zions Bancorporation NA rose 12.1%.
The president of United States, Joe Bidenand the leading Republican congressman, kevin mccarthysaid Wednesday they intend to reach an agreement before Sunday to raise the federal government’s debt ceiling to $31.4 trillion and avoid an economically catastrophic default. “To be clear, this negotiation is about the general lines of the budget, not about whether or not we are going to (pay our debts)”the president told reporters at the White House.
For his part, McCarthy was consulted by journalists on Capitol Hill about the possibility of reaching an agreement on the debt ceiling for when Biden returns from a trip to Asia on Sunday, and the Republican acknowledged that “it is feasible”, and topped off: We are in a very short term. But I never give up. I have guts, perseverance and we’re going to get it.”
After a month of confrontation, the Democratic president and the speaker of the House of Representatives agreed on Tuesday to directly negotiate an agreement, which must be reached and approved by both houses of Congress before the federal government runs out of money to pay its bills. , as soon as June 1st.
“The cautious optimism expressed by both President Biden and Speaker of Congress (Kevin) McCarthy about the progress of the debt talks has made people feel a little better”said Michael James, of Wedbush Securities.
Retailers Target Corp and TJX Companies Inc are forecasting below-expected quarterly earnings despite beating first-quarter estimates. Target shares rose 2.6% and TJ Maxx parent 0.9%.
Source: Ambito
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