U.S. stocks end higher amid optimism on U.S. debt ceiling talks

NEW YORK, May 17 (Xinhua) -- U.S. stocks closed higher on Wednesday amid mounting optimism about a potential debt ceiling deal in the United States.

The Dow Jones Industrial Average increased 408.63 points, or 1.24 percent, to 33,420.77. The S&P 500 was up 48.87 points, or 1.19 percent, to 4,158.77. The Nasdaq Composite Index rose 157.52 points, or 1.28 percent, to 12,500.57.

Nine of the 11 primary S&P 500 sectors ended in green, with financials and energy leading the gainers by rising 2.09 percent and 2.07 percent, respectively. Utilities and consumer staples bucked the trend by losing 0.36 percent and 0.10 percent, respectively.

U.S. stocks traded sharply higher with hopes for a debt ceiling deal. U.S. President Joe Biden sounded optimistic Wednesday as the White House and congressional leaders continued to work on a bipartisan deal to raise the federal government borrowing limit and avoid a U.S. default.

"I'm confident that we'll get the agreement on the budget, and America will not default," Biden said during a speech on Wednesday morning.

"The only thing I'm confident about is now we have a structure to find a way to come to a conclusion," House Speaker Kevin McCarthy told CNBC on Wednesday. "I think at the end of the day we do not have a debt default."

Marginal progress during Tuesday's highly anticipated debt ceiling negotiations is relieving investors' fears of a possible government debt default, said José Torres, senior economist at Interactive Brokers.

A bounce in regional bank shares also provided a boost for market sentiment, after Western Alliance revealed encouraging deposit growth in the second quarter.

Meanwhile, the U.S. Census Bureau reported Wednesday that privately-owned housing starts rose 2.2 percent to a seasonally adjusted annual rate of 1.4 million units in April, up from March's revised rate of 1.37 million units. The latest data is roughly in line with market expectations. Home builders see continued demand from home buyers.