NEW YORK (AP) — Signs that lawmakers are making moves to end a stalemate in Washington and avert a U.S. government debt default halted a slump on the stock market Wednesday.
President Barack Obama is making plans to talk with Republican lawmakers at the White House in the coming days as pressure builds on both sides to resolve their deadlock over the federal debt limit and the partial government shutdown before the U.S. Treasury’s borrowing authority is exhausted next week.
The stock market’s losses accelerated at the start of this week as the shutdown dragged on and both the White House and House Republicans appeared to be coming more entrenched in their positions.
The pace of companies reporting third-quarter earnings is also picking up this week, giving investors better insight into how corporate America is doing.
Yum Brands, the owner of KFC, Taco Bell and Pizza Hut, was the biggest decliner in the S&P 500 index after its earnings fell short of Wall Street’s expectations. The discount retailer Family Dollar also slumped after giving a cautious earnings forecast for next year.
In a move that many investors regarded as a positive for stocks, the White House nominated Federal Reserve Vice Chair Janet Yellen for the top position at the central bank.