Investors Optimistic as Debt Ceiling Decision Approaches, Stocks Rise.
Investors should be cautious about the debt-ceiling optimism and play it carefully as it is a "buy-the-rumor-sell-the-news event," warns Cameron Dawson, chief investment officer at NewEdge Wealth. The Treasury will start issuing new bonds after the debt ceiling, which will take liquidity out of the market, removing a tailwind for equities. Dawson advises investors to stay invested in quality names in portfolios to ride out the cycle. Meanwhile, Walmart reported on Thursday, and Fed Chairman Jerome Powell is expected to appear on Friday.