The Dow Jones index gained 0.14% to 33,348.60 points, the tech-heavy Nasdaq advanced 0.66% to 12,365.21 points and the S&P 500 gained 0.30% to 4,135.28 points.

President Joe Biden confirmed he would meet Tuesday with Republican officials, including House boss Kevin McCarthy, to try to remove the risk of a U.S. default.

"I remain optimistic because I am a congenital optimist, but I really think there is a will on their part and on our part to reach an agreement. I think we'll get there," Biden said Sunday.

Without being able to borrow more, the United States risks default from June 1, warned Janet Yellen, the Secretary of the Treasury, which would be potentially catastrophic for the financial system.

"Rising hopes that the country can avoid a debt ceiling debacle seem to have put a floor under the market," Schwab analysts said.

Peter Cardillo of Spartan Capital, however, "does not consider debt to be the focus of investors' concerns."

More concerned about the Fed

"What investors are worried about is the Fed's next move and right now the market is not going anywhere," the analyst said.

Two Fed officials spoke on Monday and more will follow during the week.

Raphael Bostic of the Atlanta Fed warned that "the appropriate monetary policy is now wait-and-see", the time to see the impact of the previous tightening. As for Neel Kashkari of the Minneapolis Fed, he warned that rates may have to remain restrictive "for an extended period of time".

The market has hardly reacted to this strict rhetoric, Cardillo noted.

On the other hand, in the morning, the New York indexes took a nosedive when manufacturing activity in the New York region appeared very disappointing in May.

"The Fed's interest rate tightening cycle is starting to hit the economy hard," Oanda's Edward Moya said.

On the stock market, the materials, information technology and banking sectors led the small increase.

Meta, the parent company of Facebook, supported the Nasdaq by rising 2.16% to $ 238.86 after a good analyst note.

Regional banks, strongly heckled in recent weeks, have rebounded strongly, such as PacWest (+17.58% to 5.35 dollars), Western Alliance (+11.98%) and Zions Corporation (+8.47%).

Magellan Midstream Partners, an oil pipeline operator, soared 13.41% to $62.84 after announcing it was bought by natural gas carrier Oneok for $18.8 billion.

Under the terms of the agreement, Magellan shareholders will receive $25 in cash and 0.6670 Oneok shares for each of their securities. That's a 22% premium to Friday's closing price ($55.41).

Oneok's share, on the other hand, was the red lantern of the market dropping 9.06% to $ 57.95.

© 2023 AFP