The stock market rose on hopes that a smaller group of Washington negotiators will break the deadlock on raising the US debt ceiling and avoiding an unprecedented default.
Equities ended the recent trading lull, with the S&P 500 gaining more than 1% and the Nasdaq 100 reaching its highest level since August. Treasuries fell, with 10-year note yields approaching 3.6%. President Biden expressed confidence that no default would occur, and House Speaker McCarthy stated that reaching an agreement this week is "doable."
The amount of money available to pay bills in the United States fell to $87 billion on May 15th, increasing the likelihood that the government will run out of cash by early June if the debt limit is not raised or suspended by then. The Treasury's bank account has recently been under pressure due to measures being taken to avoid exceeding the $31.4 trillion debt limit.