Strong Earnings Propel US Stock Market Surge, President Biden and Speaker McCarthy Firm on Debt Resolution

 US President Biden has made a resolute declaration that the United States will not default on its debt. President Biden, along with House Speaker Kevin McCarthy, is determined to swiftly reach an agreement to avert a debt default and the ensuing financial turmoil. Investor confidence receives a boost from the strong quarterly earnings of retail giant Target, resulting in a significant surge across the three major US stock indices.

Meanwhile, regional bank stocks experience a notable upswing, as Western Alliance Bancorp reports a remarkable deposit growth of over $2 billion since the previous quarter's end, alleviating concerns within the market. Tesla's stock price has seen a remarkable surge of over 4.4% following its annual shareholder meeting.

In international news, the Japanese Prime Minister has extended an invitation to semiconductor executives for talks, leading to a substantial increase of nearly 6% in TSMC ADR. Lastly, the US housing market shows signs of recovery, as April records a growth of 2.2% in new housing starts, surpassing market expectations that had predicted a decline of 1.4%. This indicates a gradual recovery in the residential real estate market.

Key Takeaway:

• US President Biden vows, "The United States will not default." President Biden and House Speaker Kevin McCarthy are determined to reach an agreement as soon as possible to avoid a debt default and financial catastrophe. Strong quarterly earnings from retail giant Target boost investor confidence, leading to a robust increase in the three major US stock indices.
• Regional bank stocks surge as well, with Western Alliance Bancorp reporting a deposit growth of over $2 billion since the end of the previous quarter, alleviating market concerns.
• Since the annual shareholder meeting, Tesla's stock price has skyrocketed by over 4.4%.
• Japanese Prime Minister invites semiconductor executives for talks, causing TSMC ADR to surge nearly 6%.
• US housing starts in April grew by 2.2%, surpassing market expectations of a 1.4% decline, indicating a gradual recovery in the residential real estate market.