Belfast Telegraph

Sunday 13 July 2014

Debt talks push US stocks higher

Signs of a US government deal boosted US stocks

Stocks rose yesterday, helped by signs that Washington was moving closer to a deal that would avert a default by the US government.




Democratic Majority Leader Harry Reid opened the Senate session yesterday by saying he was "very optimistic we will reach an agreement this week that's reasonable in nature". The Republican Senate leader, Mitch McConnell, seconded Mr Reid's view, saying there had been "a couple of very useful discussions".

The Dow Jones industrial average added 64.15 points, or 0.4%, to close at 15,301.26. The index was down as much as 100 points earlier in the day.

The Standard & Poor's 500 index rose 6.94 points, or 0.4%, to 1,710.14. The Nasdaq composite rose 23.40 points, or 0.6%, to 3,815.27.

The United States will reach the limit of its borrowing authority on Thursday, according to estimates from the Treasury Department. If the debt ceiling is not raised, investors fear the US could default on its borrowings in the coming weeks.




The US government remains partially shut down because House Republicans want to attach conditions to a budget bill that would scale back the country's new health care law. President Obama is insisting that the government be reopened without strings attached. The partial shutdown is entering its third week.


"We're basically trading on the news at this point," he said.


