Markets Rally on Optimism for Debt Ceiling Resolution

Stocks and commodities rose as investors bet that US politicians will be able to negotiate a solution to the debt-ceiling standoff, with President Joe Biden voicing optimism that a deal could be reached. The US debt ceiling remains the biggest focus for investors this week and strategists are warning about market turmoil and economic disaster if politicians don’t agree to raise the government’s $31.4 trillion borrowing limit. The showdown in Washington is just one of many risks keeping investors sidelined, from recession to cracks in the banking system to disappointed hopes for a turn to easier monetary policy.