Modest gains ended a volatile session today on Monday, as US stocks hedged that a deal would soon be put in place for the increase of the debt limit. This optimism though overcame fears that no obvious signs of progress are present and available.
President Barack Obama was scheduled to meet with a number of Congressional leaders though delayed, with signs of negotiations a positive sign taken by the market. Senate Majority Leade Harry Reid, over the weekend, was working with Senate Republican leader Mitch McConnell and appeared on the Senate floor optimistic that a deal can be hammered out in the next few days.
Over the weekend, stocks dipped after several discussions failed to finalize a solution in the passage of the budget to reopen the full national government and raise the federal borrowing limit of USD16,7 trillion by October 17. A failure to raise the debt ceiling would result in the world's biggest economies defaulting on its loans.
Aside from the debt ceiling and the government shutdown, the continued impasse has been wreaking havoc with the overall economy, causing the GDP to decline with each day passing without government reopening.
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