IMPORTANT POINTS:
- Stocks rose on Monday before the market opened on investor optimism about the extension of the US debt limit.
- President Joe Biden, House Speaker Kevin McCarthy and other congressional leaders will meet Tuesday to discuss this issue.
- Treasury Secretary Janet Yellen stressed over the weekend that discussions are progressing.
- JPMorgan CEO Jamie Dimon clarified that if this is not fixed in time, panic will grip the markets.
US stock futures rose ahead of the market on Monday as investors were optimistic the country would raise its debt limit and not default.
At the time of writing, the S&P 500 was up 0.2%, as were the Dow Jones and the Nasdaq.
Undoubtedly, the issue that most worries traders on Wall Street is the possible default of the United States. As a result, President Joe Biden, the Speaker of the House of Representatives, Kevin McCarthy, and other congressional leaders will meet this Tuesday to discuss the matter.
In parallel, Treasury Secretary Janet Yellen mentioned over the weekend that the discussions “are progressing” and that she plans to meet with bankers to discuss the issue and follow recommendations.
Jamie Dimon, the CEO of JPMorgan, expressed concern when discussing the issues if the debt ceiling is not extended in time. In this sense, he warned that the more days go by, the panic will begin to seize the markets. Recall that Yellen stated that on June 1 “the United States could run out of cash”.
Michael Wilson from Morgan Stanley also clarified that during the debate on the debt limit the market will become very volatile, so he recommended being prudent these days.
According to Wislon’s analysis of the information it handles, “many clients believe this issue will be resolved, but not without some short-term volatility.”
On the other hand, on Wall Street the earnings season continues this week, which will have the results of the retailers Walmart, Target and Home Depot, as well as the Chinese giants Alibaba and Tencent .
