Deal in Sight, Markets Gain Most Since Start of 2013
NEW YORK ( TheStreet) -- Major U.S. stock markets surged Thursday after investors cheered a possible short-term agreement between Republicans and Democrats to raise the nation's borrowing limit.
The S&P 500 advanced 2.2% to 1,692.56, the benchmark's biggest jump since January 2.
House Speaker John Boehner urged his Republican colleagues to agree to a short-term debt ceiling increase, while White House Press Secretary Jay Carney didn't signal that President Obama would reject the plan.
"History has proven time and again that the system is stronger and more resilient than the politicians and we are confident that this again will be the case," J. Wesley Clayton, managing director and founder of HighTower's Twickenham Wealth Advisors in Huntsville, AL commented in an email. "We always take a longer term view of the markets, and the current version of proven political incompetence to solve problems effectively suggests that the more things change, the more they stay the same.
Treasury Secretary Jack Lew set a do-or-die tone early in the day when he appeared before the Senate Finance Committee to warn lawmakers that a failure to reach an agreement would risk the U.S. falling short on payments to public programs such as Social Security and to global creditors.
Lew said the country shouldn't have to be put in a position where it has to pick and choose which principal and interest payments can be fulfilled and which ones must be delayed. "There is no way of knowing the irrevocable damage such an approach would have on our economy and financial markets," Lew said.