Policy: Economy

Economic dashboard: Stocks spike on news of possible debt ceiling deal

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Debt Ceiling,PennAve,Joseph Lawler,Economy,Budgets and Deficits,Minusextra,Government Shutdown

News of a possible Congressional deal to extend the debt ceiling led to an immediate jump in stock markets and boosted the price of Treasury bills Thursday.

Although indicators point to creeping fears among investors and consumers, those signs leveled off following Thursday morning's news.

Yields on short-term Treasury debt, which had risen to levels as high as they did during the 2011 debt ceiling crisis Wednesday, fell.



The U.S. dollar index leveled off.


Stocks boomed. The S&P 500 gained 1.75 percent after falling the previous two days.


Heading into Thursday, consumer confidence as tracked in the daily Gallup poll had remained at a very low reading.


The Baker-Bloom-Davis Economic Policy Certainty Index remained steady.


It is far from clear that the short-term debt ceiling deal proposed by House Republican leaders will win enough support from GOP conservatives or Senate Democrats to pass, so it's not yet certain that the threat of a debt default has been defused. Nevertheless, the news was enough for a small improvement in the economic outlook.
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