"Markets abhor uncertainty, so these are spectacular news that will remove one of the biggest obstacles to US economic growth and prosperity and better financial market conditions," said Chris Rupkey, Chief Financial Economist at MUFG.
Over the next few months, legislators will have to vote to repay the debt America owes. If this is not the case, the United States could not afford its debt payments. This could mean that America will not repay its creditors, possibly causing a shock from the US financial market, on which the government relies to finance its programs and compensate for the massive budget deficit.
The decommissioning agreement gives investors hope that politicians will not shoot again when it comes to deploying much higher.
Oil rises higher
OPEC, the oil cartel led by Saudi Arabia, announced on Tuesday that it will cut production by 800,000 barrels a day. Investors' concerns that a global slowdown would continue to affect demand have been alleviated and oil producers are not doing enough to curb production.
The price of US crude rose 2% on Tuesday to $ 53.56 a barrel.
Oil prices have risen in recent weeks after the United States sanctioned Venezuela, a major crude oil supplier around the world. The sanctions against Iran have also supported oil prices.
However, increased crude oil production in the United States has depressed oil over the past year. Nevertheless, this year's oil price could rise between 10% and 15% due to OPEC's production cuts and sanctions. Francisco Blanch, Bank of America's global commodities researcher, Merrill Lynch, told Julia Chatterly on CNNi's "First Move" on Tuesday. 19659006] Energy stocks recovered. Hess ( and ) Devon Energy (19459010) DVN jumped by nearly 3% each.