The Dow Jones Industrial Average rose 0.30% to 34,416.99 points, while the Standard & Poor’s 500 rose 0.41% to 4,363.55 points.
The S&P 500 shed 1.3% but eventually turned towards the green zone – there hasn’t been such a big reversal in the intraday trend since February.
For its part, the technological Nasdaq Composite rose in price by 0.47% to 14,501.91 points.
The stock traded in the red but turned to positive territory when it became known that Mitch McConnell, the leader of the Republicans in the US Senate (upper house of Congress), is considering options to avoid a US default on debt payments.
Remember that a potential US default – unless the debt ceiling is raised or raised by October 18 – continues to make investors wary, so this McConnell blink of an eye was very well received by the market.
Indeed, one of the threats lurking in the United States is the possibility of the country defaulting on debt repayment if Congress does not approve it by October 18 (the date by which the money will be available, according to Treasury Secretary Janet Yellen). suspension or increase in the federal debt limit.
The possibility of a default – which will be the first in US history – has already prompted Fitch to mention the possibility of revoking the highest rating (triple A) that it currently assigns to US sovereign debt. States.
Mitch McConnell said today that he is weighing two options for avoiding default.
One of them is the use of a legislative mechanism called “approval”, which allows approving projects in exceptional cases by a simple majority of votes (more votes “for” than “against”). For the bill to be approved, 60 votes are needed. Since Democrats only control 50 seats in this upper house of Congress, they need 10 Republicans to vote in favor. Reconciliation is a kind of “cheat” that avoids the need for Republicans to vote to pass a proposal, but Democrats have historically opposed this mechanism.
Another option is two-party approval of an emergency extension of the country’s debt ceiling to cover the current level of spending until December. This second idea will give Congress some coverage for at least the next two months.
