US stocks climb as optimism on debt-ceiling negotiations grows

• US stocks moved higher Wednesday as policymakers shared more upbeat comments on the debt-ceiling impasse.
• House Speaker Kevin McCarthy said Tuesday that a deal could happen by the "end of the week."

US stocks climbed Wednesday as investors cheered encouraging developments on the debt ceiling negotiations between President Joe Biden and lawmakers in Washington, DC.

After a Tuesday afternoon meeting between Biden and congressional leaders, House Speaker Kevin McCarthy said that there's an improved process for further talks, and that it's "possible to get a deal by the end of the week." Biden had cancelled part of an overseas trip to prioritize the negotiations, the White House said.

"I think at the end of the day we do not have a debt default," McCarthy told CNBC on Wednesday. "I think we finally got the president to negotiate."

Treasury Secretary Janet Yellen has warned repeatedly of the nearing so-called "X-date," when the government defaults on its debt. Yellen said it could happen as early as June 1, and that the event would lead to an "economic and financial storm."

Here's where US indexes stood as the market opened 9:30 a.m. on Wednesday:

• S&P 500: 4,129.66, up 0.48%

• Dow Jones Industrial Average: 33,160.47, up 0.45% (148.33 points)

• Nasdaq Composite: 12,384.61, up 0.39%

Here's what else is going on:

• Google parent Alphabet rejoined the $1.5 trillion valuation club for the first time in a year on the back of its AI efforts.
• Elon Musk slammed the Fed for reacting too slowly to economic challenges.
• Goldman Sachs' David Solomon and other top execs have warned of disaster for stocks if the debt crisis isn't resolved.
• Mohamed El-Erian said the debt ceiling deadlock threatens the US's international reputation.

In commodities, bonds, and crypto:

• Oil prices climbed, with West Texas Intermediate up 1.6% to $71.97 a barrel. Brent crude, the international benchmark, inched higher 1.5% to $76.01 a barrel.
• Gold edged lower 0.2% to $1,987.90 per ounce.
• The 10-year Treasury yield was slightly lower at 3.54%.
• Bitcoin moved lower 1.07% to $26,692.01.