# Wall Street gains, Treasury yields rise as debt ceiling talks progress
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-19
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Wall Street gains with progress on debt ceiling talks
Meta Description: Stay updated on U.S. stock gains and Treasury yield rises as debt ceiling negotiations progress. Expert insights and market trends for informed investing
URL: https://financedigest.com/wall-street-gains-treasury-yields-rise-as-debt-ceiling-talks-progresshtml

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NEW YORK (Reuters) – U.S. stocks were tentatively higher on Friday and benchmark Treasury yields extended their upward trajectory as market participants looked for signs of progress in the debt ceiling negotiations in Washington.

All three major U.S. stock indexes were modestly green, with little conviction or catalysts to spark a major [move in the equities market](https://www.financedigest.com/zeal-to-move-through-settlements-anew-to-drive-the-plantbased-meat-market.html "Zeal To Move Through Settlements Anew To Drive The Plantbased Meat Market").

Federal Reserve Chair Jerome Powell was expected to participate in a panel on [monetary policy](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation") later in the morning. His comments will be closely scrutinized for any clues regarding whether the [central bank will press the rate hike](https://www.financedigest.com/central-banks-ease-off-on-rate-hike-push-in-october.html "Central banks ease off on rate hike push in October") pause button at next month’s meeting, and how soon it could begin to dial back its restrictive policy.

Powell does not like to surprise the markets,” said Liz Young, head of [investment strategy](https://www.financedigest.com/what-makes-a-good-long-term-investment-strategy.html "What makes a good long-term investment strategy?") at SoFi in New York. I [expect to hear some statements about inflation](https://www.financedigest.com/exclusive-german-govt-expects-inflation-to-surge-to-2-9-in-2021-source.html "Exclusive-German govt expects inflation to surge to 2.9% in 2021 – source"), and I expect him to leave the door open for a pause but also a rate hike.

Talks on Capitol Hill on raising the [debt ceiling](https://www.financedigest.com/stocks-reach-one-month-high-on-u-s-debt-ceiling-hopes.html "Stocks reach one-month high on U.S. debt ceiling hopes") appear to be moving forward, with Democratic negotiators saying they’ve made “steady progress” toward a deal that would avoid a U.S. [credit default](https://www.financedigest.com/banks-recover-75-of-defaulted-debt-owed-by-large-corporate-borrowers-finds-new-global-credit-data-report.html "Banks recover 75% of defaulted debt owed by large corporate borrowers, finds new Global Credit Data report").

“Stuff that never happened before happens all the time,” Young added. “We’ve seen this movie before, and we’ve had government shutdowns. It adds [political fuel to an economic](https://www.financedigest.com/stocks-tumble-globally-on-raft-of-economic-political-worries.html "Stocks tumble globally on raft of economic, political worries") fire that’s already burning under the surface.

The Dow Jones [Industrial Average](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") rose 66.08 points, or 0.2%, to 33,601.99, the S&P 500 gained 9.46 points, or 0.23%, to 4,207.51 and the Nasdaq Composite added 3.00 points, or 0.02%, to 12,691.84.

European [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") climbed and the German DAX touched a record high as optimism about a debt ceiling deal spread across the Atlantic.

The pan-European STOXX 600 index rose 0.93% and MSCI’s gauge of stocks [across the globe gained](https://www.financedigest.com/sdl-helps-lifeplus-engage-with-customers-across-50-countries-and-gain-control-of-translation-costs-and-processes.html "SDL Helps Lifeplus Engage with Customers across 50 Countries and Gain Control of Translation Costs and Processes") 0.35%.

Emerging [market stocks](https://www.financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumble.html "Bitcoin falls to 22-month low as stock markets tumble") lost 0.05%. MSCI’s broadest index of Asia-Pacific [shares outside](https://www.financedigest.com/outside-door-handle-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Outside Door Handle Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") Japan closed 0.15% higher, while Japan’s Nikkei rose 0.77%.

[Yields for 10-year Treasuries](https://www.financedigest.com/stocks-tumble-on-inflation-fears-treasury-yields-jump.html "Stocks tumble on inflation fears, Treasury yields jump") continued to climb, touching their highest level in two months in advance of Powell’s remarks.

Benchmark 10-year notes last fell 15/32 in price to yield 3.7032%, from 3.648% late on Thursday.

The 30-year [bond last fell 25/32 in price to yield](https://www.financedigest.com/german-bond-yields-give-up-rise-after-u-s-price-data.html "German bond yields give up rise after U.S. price data") 3.9466%, from 3.901% late on Thursday.

The [greenback pulled back from a multi-month high as robust economic data this week has dimmed hopes that the Federal Reserve would cut](https://www.financedigest.com/asos-reports-first-half-loss-as-shoppers-cut-back.html "ASOS reports first-half loss as shoppers cut back") its key policy rate before year-end.

The [dollar index](https://www.financedigest.com/dollar-index-jumps-after-u-s-retail-sales-show-surprise-rebound.html "Dollar index jumps after U.S. retail sales show surprise rebound") fell 0.21%, with the euro up 0.18% to $1.0788.

The Japanese yen strengthened 0.14% [versus the greenback at 138.55 per dollar](https://www.financedigest.com/russian-rouble-nears-4-week-high-versus-dollar.html "Russian rouble nears 4-week high versus dollar"), while sterling was last trading at $1.2427, up 0.15% on the day.

[Oil prices bounced back from Thursday’s losses](https://www.financedigest.com/wall-street-set-to-open-higher-oil-prices-extend-losses.html "Wall Street set to open higher, oil prices extend losses") of more than 1% as the risk of U.S. [debt default faded](https://www.financedigest.com/oil-rebounds-on-fading-risk-of-u-s-debt-default.html "Oil rebounds on fading risk of U.S. debt default").

U.S. crude rose 0.18% to $71.99 per barrel and Brent was last at $76.36, up 0.66% on the day.

Gold inched [higher in opposition to the dollar’s](https://www.financedigest.com/dollar-higher-on-risk-aversion-euro-revisits-parity.html "Dollar higher on risk aversion; euro revisits parity") weakness.

Spot gold added 0.1% to $1,959.19 an ounce.

(Reporting by Stephen Culp; additional reporting by Naomi Rovnick and Ankur Banarjee; editing by Mark Heinrich)


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