"The markets refrain from uncertainty, so this is spectacular news that eliminates one of the biggest obstacles to US economic growth and prosperity and better economic market conditions," said Chris Rupkey, chief economist at MUFG.
Over the next few months, legislators must vote to pay off debt America owes. If it does not, the United States can make its debt payments commonplace. It could signal that America will not repay its creditors, which can send a shock through the US financial market, which the government undertakes to fund its programs and compensate for its enormous budgetary shortage.
The suspension agreement gives investors hope that politicians will not push their feet back when the bet is potentially much higher.
Oil moves higher
OPEC, the oil cartel led by Saudi Arabia, announced Tuesday that it would reduce production by 800,000 barrels a day. The weakening investors' concerns that a global economic slowdown would continue to damage demand and that oil producers are not enough to slow down production.
The price of US commodity increased 2% Tuesday to $ 53.56 per barrel.
Oil has risen in recent weeks after the United States sanctioned Venezuela, a major supplier of crude oil around the world. The sanctions against Iran have also contributed to oil prices.
But increased crude production in the US has weighed on oil in the past year. The oil price can still rise between 10% and 15% this year due to OPEC's production cuts and sanctions, Francisco Blanch, head of global commodities research at Bank of America Merrill Lynch told Julia Chatterly on CNN's "First Move" Tuesday. 19659006] The energy stores were collected. Hess ( and ) Devon Energy ( each jumped almost 3%.