Debt Ceiling Headline Continues To Dominate The Price Action
President Joe Biden has reportedly urged his negotiators to keep following a debt-limit deal after House Speaker Kevin McCarthy indicated both parties may reach an agreement as soon as this weekend.
In a call early Friday from Japan, where Biden is attending the Group of Seven summit, the President told his negotiating team in Washington that he's confident Congress will act in time, reported Bloomberg citing a White House official.
Price drop supported until more talks
In a call that roughly lasted for 20 minutes, negotiators informed Biden they were making steady progress, the report said.
However, news of an impasse from the last meeting caused the U.S. markets to end in red although investors stayed optimistic on the debt ceiling crisis resolution.
Trade #1
Meanwhile, McCarthy and Senate Majority Leader Chuck Schumer are making plans for votes in the coming days on a yet-to-be-finalized deal, the report said.
However, even if a resolution is reached, the barrage of bond sales by the Treasury Department to meet its obligations in the aftermath of a resolution is expected to drain liquidity from the banking system and push up short-term borrowing rates.
Weekly trade summary
⚠️ Trading Tip: Looking at calls above 337 and puts under 335.5 on Monday. Pay attention to the debt ceiling saga unfolds in the week ahead…
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June 1 debt ceiling deadline is fake news ! "Old Yeller" yapping incoherently ! Negotiations could easily last til mid June which could result in "adjusted" market levels !
There is nothing that can keep this down. There is constant buying stemming directly from constant money creation at one of the top 4 central banks
If nobody ever thought the US would default then why is an "agreement" such a big positive deal for the market ? The answer is that is isn't ! It will be a sell the news event on an epic scale !
There will be no default for sure. But that is not going to stop down slide from here.
Bracing myself for what will probably be another week of pain.
NVDA going to pass Amazon in market cap?