Dow Closes Up More Than 400 Points With Debt Ceiling in Focus


The Dow Jones Industrial Average gained 409 points, or 1.2%, the S&P 500 rose 1.2%, and the Nasdaq Composite was up 1.3%.


All three indexes had their best day since May 5, according to Dow Jones Market Data.


Earlier in the day, President Joe Biden said he was confident that he and congressional leaders would avoid a default.


“President Biden and Speaker McCarthy continue to spar in the headlines, but we are starting to see enough common themes in their views to feel confident that a deal is going to be announced in relatively short order,” wrote Thomas Simons, a U.S. economist at Jefferies.


“Given the June 1 x-date warnings from Treasury and the time it takes for the legislative process to play out, we could see an announcement of a framework as soon as Sunday when Biden returns from his trip to Japan for the G-7 meetings,” Simons added.


Regional banks also saw gains Wednesday after Western Alliance Bancorp (WAL) said its deposits had grown in the current quarter.

 

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