U.S. stocks rise on optimism about a debt ceiling deal

  • Investing.com
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U.S. stocks rise on optimism about a debt ceiling deal
Credit: © Reuters.

Investing.com -- U.S. stocks were rising on optimism about a deal that could prevent the U.S. from risking default on its debt. Lawmakers were still hammering out details.

At 9:37 ET (13:37 GMT), the Dow Jones Industrial Average was up 15 points, or 0.1%, while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.2%.

Expectations are rising that a deal to raise the debt ceiling to avoid default would be reached over the weekend. President Joe Biden, who is in Japan for the Group of Seven summit of world leaders, is expected to return home on Sunday and hold a press conference to update on the progress of the talks.

Bident administration officials have said the U.S. has until early June, possibly as early as June 1, to get a deal done before it runs out of options to continue paying its obligations.

Later this morning Federal Reserve Chair Jerome Powell is scheduled to participate on a panel with former Fed Chair Ben Bernanke at a conference in Washington. His appearance caps a week of appearances by Fed officials, whose comments reveal the policy makers are still deciding whether to pause rate hikes in June or continue to tighten as they fight inflation.

The S&P and the Nasdaq are on track for their strongest weekly performance since March as corporate earnings bolster investor risk appetite.

Agricultural equipment maker Deere & Company (NYSE: DE ) raised its annual profit forecast as surging farm incomes boost purchases. Shares rose 3.4%.

Shares of apparel and shoe retailer Foot Locker Inc (NYSE: FL ) tumbled 24% after it cut its annual sales and profit forecasts. It saw a steep drop in demand despite big discounts meant to clear inventory.

Investment bank Morgan Stanley (NYSE: MS ) shares wobbled after CEO James Gorman announced plans to step down in the next year. Shares fell 0.5%.

Oil rose. Crude Oil WTI Futures were up 0.9% to $72.56 a barrel, while Brent Oil Futures were up 1.2% to $76.78 a barrel. Gold Futures were flat at $1,961.

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