NEW YORK—Wall Street rallied Wednesday on hopes the U.S. government can avoid a potentially disastrous default on its debt.
The S&P 500 climbed 1.2 percent, with much of the gain coming after President Joe Biden said he’s confident “America will not default.” The Dow Jones Industrial Average rose 408 points, or 1.2 percent, while the Nasdaq composite gained 1.3 percent.
Biden’s comments came after House Speaker Kevin McCarthy (R-Calif.) said late Tuesday that Democrats and Republicans could reach a deal by the end of the week, though the two sides remain far apart. They’re staring down a June 1 deadline, which is when the U.S. government could run out of cash unless Congress allows it to borrow more….