May 26, 2023
Good morning,
Happy Friday! The latest stories coming out of Washington DC suggest that some sort of debt-ceiling deal is within reach. That seems to match yesterday and this morning’s action in the futures market (Futures are +.20% at 8am ET). The gritty details of the deal probably won’t be inked until the market has closed for the long weekend. However, it does seem that the overnight progress reported thus far is sufficient to reduce the issue as a headwind for equity sentiment going into the weekend. Confirming that notion, bond yields have halted their steady two-week climb this morning.
Today is a minor equity option expiration day (not the quadruple kind) but it could lead to some strange price moves at the close – especially since trading desks are lightly staffed this holiday Friday.
Hope you have a delightful holiday weekend. See you Tuesday.
Be well,
Mike