S&P 500 Hits Nine-Month High on Debt-Deal Signals: Markets Wrap

  • McCarthy, Schumer eye debt-limit vote ahead of June 1 deadline
  • Fed’s Logan doesn’t see case for June pause amid high prices

Pedestrians walk past the Tokyo Stock Exchange in Tokyo, Japan.

Photographer: Toru Hanai/Bloomberg
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Stocks climbed on signals that American lawmakers are making progress on debt-ceiling talks and will be able to avert a first-ever default. Treasury yields rose on speculation the Federal Reserve will need to keep interest rates higher for longer as inflation remains elevated.

The S&P 500 hit a nine-month high — closing within a whisker of 4,200. Tech outperformed, with the Nasdaq 100 rallying almost 2% to the highest since April 2022. The Dow Jones Industrial Average trailed major benchmarks, with a gain of 0.3%. Wall Street’s fear gauge, the Cboe Volatility Index, tumbled.