Wednesday Morning Cheat Sheet: 3 Stories Moving Markets
It’s Wednesday, October 16, and the United States is due to exceed its borrowing limit tomorrow. Treasury Secretary Jack Lew testified before Congress on Thursday, saying that come October 17, if Congress fails to pass a stopgap measure to increase the debt limit, the U.S. would be left with a cash balance of approximately $30 billion and would have to use incoming tax revenue to pay the nation’s bills.
“If Congress fails to meet its responsibility, it could be deeply damaging to the financial markets, the ongoing economic recovery, and the jobs and savings of millions of Americans,” Lew said.
Major U.S. equity indexes have had somewhat thick skin throughout the 16-day impasse, and they advanced in premarket trading as investors held out hope for an eleventh-hour solution. At 8:50 a.m., Dow futures were up 0.65 percent, S&P 500 futures were up 0.63 percent, and Nasdaq futures were up 0.47 percent.