Stocks Rise on Debt Ceiling Optimism and Positive Economic News

The S&P 500 rose over 1% as investors speculated that a smaller group of Washington negotiators will break the deadlock on raising the US debt ceiling and avoid a default. The dollar moved away from session highs, and Treasuries dropped across the curve, with yields on 10-year notes approaching 3.6%. The amount of money the US has on hand to pay its bills sank to $87 billion on May 15, increasing the chances the government will run out of cash by early June if the debt limit isn’t raised or suspended by then. JPMorgan Chase & Co. CEO Jamie Dimon said the US government “probably” will not default on its debts.