NEW YORK — All three major US stock indexes ended the day higher on Friday amid optimism an agreement to avert a potentially catastrophic US debt default was within reach.
Democrats and Republicans moved closer to a deal on Friday, just days before the Treasury Department warned that the United States could run out of money to meet all existing spending obligations.
The broad-based S&P 500 rose 1.3 percent to 4,205.45, while the Dow Jones Industrial Average posted a more modest 1.0 percent gain to end the week at 33,093.34.
“The market is rising on the hope that they will probably announce very soon that we are averting the default,” said Peter Cardillo of Spartan Capital Securities.
The Nasdaq surged higher to end the day up 2.2 percent at 12,975.69, driven by an ongoing rally in tech stocks like Nvidia, which should benefit widespread adoption of artificial intelligence.
Friday afternoon, Treasury Secretary Janet Yellen said the new numbers suggest the so-called X-date, when the US runs out of money to pay all bills, could come as early as June 5, four days later than previously forecast.
“Based on the most recent data available, we now believe that unless Congress raises or suspends the debt limit by June 5, the Treasury Department will not have sufficient resources to meet the government’s commitments,” she wrote in a letter to Republican Speaker of the House Kevin McCarthy.
Democrats and Republicans moved closer to a deal on Friday, just days before the Treasury Department warned that the United States could run out of money to meet all existing spending obligations.
The broad-based S&P 500 rose 1.3 percent to 4,205.45, while the Dow Jones Industrial Average posted a more modest 1.0 percent gain to end the week at 33,093.34.
“The market is rising on the hope that they will probably announce very soon that we are averting the default,” said Peter Cardillo of Spartan Capital Securities.
The Nasdaq surged higher to end the day up 2.2 percent at 12,975.69, driven by an ongoing rally in tech stocks like Nvidia, which should benefit widespread adoption of artificial intelligence.
Friday afternoon, Treasury Secretary Janet Yellen said the new numbers suggest the so-called X-date, when the US runs out of money to pay all bills, could come as early as June 5, four days later than previously forecast.
“Based on the most recent data available, we now believe that unless Congress raises or suspends the debt limit by June 5, the Treasury Department will not have sufficient resources to meet the government’s commitments,” she wrote in a letter to Republican Speaker of the House Kevin McCarthy.
