Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2023 in New York City.
Michael M. Santiago | Getty Images
Here are the most important news items that investors need to start their trading day:
1. Power surge
Investors liked what they heard coming out of debt ceiling negotiations in Washington on Wednesday (more below), if the day’s stock market gains are any indication. The Dow surged over 400 points, while the Nasdaq and the S&P 500 each jumped more than 1%. Regional banks also popped after what’s now months of turmoil. On Thursday, markets will have plenty more to digest, courtesy of Walmart’s earnings, as well as several economic data points, including weekly jobless claims, existing home sales for April and the Philly Fed’s manufacturing survey for this month. Follow live market updates.
2. Easing default fears
Speaker of the House Kevin McCarthy, R-Calif., conducts a news conference with house and senate Republicans on the “debt crisis,” on the west plaza of the U.S. Capitol on Wednesday, May 17, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images
At least President Joe Biden and House Speaker Kevin McCarthy agree on one thing: They think the United States government won’t default on its debt. Both leaders said as much Wednesday, with just a few weeks to go before the U.S. is set to run out of cash to pay its bills. Negotiations between the White House and McCarthy’s camp have intensified, and they will need to produce some kind of deal within days in order for Congress to pass a bill and get it to Biden’s desk ahead of a default, which economists estimate could result in millions of jobs lost and a big hit to the U.S. gross domestic product.
3. Walmart beats
A Walmart location in Chicago, Illinois, on Wednesday, April 12, 2023.
Christopher Dilts | Bloomberg | Getty Images
Walmart boosted its outlook for the year as the largest U.S. retailer continued to benefit from consumers’ focus on necessities like groceries over…
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