US stocks traded mixed Monday ahead of debt-ceiling negotiations between President Joe Biden and House Speaker Kevin McCarthy.reiterated her warning that the government will run out of money to pay its bill as early as June 1, though stocks have seemingly shrugged off risks and ended last week in the green.
In the five days to Friday, the S&P 500 gained 1.65%, the Nasdaq was up 3.04%, and the Dow moved 0.38% higher. But JPMorgan warned in a Monday note that equities could see a violent re-pricing similar to 2011, when the S&P 500 sold off 17% amid the last debt-ceiling standoff. "Our base case," the firm's strategists wrote,"remains that the debt ceiling ultimately does get lifted/suspended though the journey to that end could be at the eleventh hour and drive significantly higher market instability than appreciated by the market currently."