Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Debt ceiling deal: will the U.S. stocks rally this week?

U.S. stocks will be in focus this week after Republicans agreed in principle with the White House to raise the debt ceiling.

What does it mean for the U.S. stocks?

The said development is a major step forward in preventing a default. Still, the Head of Investments at Generali Insurance Asset Management – Antonio Cavarero does not expect the S&P 500 to unlock a significant upside in response.

The scenario of an agreement was by far the centre scenario. Therefore, I would not be expecting a major relief rally. Most part of these good news were already in the prices.

Details of the debt ceiling deal are yet to be officially revealed. According to CBS, though, the U.S. government will likely keep its non-defense spending flat over the next two years.

At writing, the benchmark index is up 10% versus the start of the year.

Debt ceiling deal needs approval from Congress

On the flip side, the recent economic data has been positive for the U.S. stocks. Last week, the Fed’s preferred inflation gauge was reported to have eased further in April (find out more).

But the debt ceiling deal is still awaiting approval from a divided Congress that will remain the centre of attention for markets, Cavarero noted today on CNBC’s “Street Signs Europe”.

It’s possible that the market in the next few days will focus on execution risk – the fact that this agreement needs to be sealed down with proper laws and needs to find the votes.

The U.S. GDP was recently reported to have grown at an annualised pace of 1.3% in the first quarter.  

The post Debt ceiling deal: will the U.S. stocks rally this week? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Oracleofomahasays.com