PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday, with the rebound of regional banks and the cautious optimism of investors on the negotiations in Washington to avoid a possible default of payment of the United States on its debt.

About a quarter of an hour after the start of trading, the Dow Jones index gained 111.27 points, or 0.34%, to 33,123.41 points and the broader Standard & Poor’s 500 rose 0.35% at 4,124.27 points.

The Nasdaq Composite takes 0.26%, or 32,398 points, to 12,375.45 points.

American regional banks are regaining ground, led by Western Alliance Bancorp (+12.8%), which announced an increase in deposits and benefits from a “buy” recommendation from Bank of America Global Research.

Still on the stock market, the Target retail group gained 1.45% after publishing a quarterly profit above expectations. The results of competitor Walmart (-0.14%) are expected on Thursday.

Tesla gains 1.84% after Elon Musk silenced rumors he might quit and discussed the development of two new consumer models at the group’s general meeting.

In politics, talks between President Joe Biden and Republican House Leader Kevin McCarthy progressed Tuesday night, but failed to reach an agreement on raising the debt ceiling.

Negotiations will resume later this week between the two sides.

“The cautious optimism expressed by (Joe) Biden and (Kevin) McCarthy makes markets feel a little better,” said Michael James at Wedbush Securities.

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(Laetitia Volga, edited by Blandine Hénault)

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