Investing.com - Stocks rose sharply on Tuesday amid optimism that a partial government shutdown will be averted, despite President Donald Trump expressing disappointment in the deal.
Trump told reporters he was "not happy" with the deal on border security struck by U.S. lawmakers, but he downplayed expectations the United States was heading toward a second partial government shutdown.
"I don’t think you’re going to see a shutdown,” Trump said. But he added: "If you did have one, it’s the Democrats' fault."
The deal includes just $1.375 billion for a border barrier, well short of the $5.7 billion Trump has demanded for his proposed border wall.
On trade, meanwhile, Trump said he may consider extending the current 90-day trade war truce, which expires on March 1, but he would prefer not to.
Without a deal, or extension to the deadline, the U.S. has threatened to raise tariffs on Chinese imports to 25% from 10%.
Materials and financials, meanwhile, drove the bulk of the gains in the broader market, with the latter propped up by a surge in Brighthouse Financial .
Brighthouse (NASDAQ:BHF) jumped 14% after its fourth-quarter earnings topped expectations.
Major Wall Street banks were boosted a surge in U.S. government bond yields on the back of improved risk sentiment. Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM) ended the day higher.
The energy sector was supported by gains in U.S. oil prices on data showing OPEC slashed oil output last month, while Saudi Arabia pledged to continue reducing production also supported sentiment.
But analysts downplayed the significance of the drop in small business optimism, blaming it on volatile market conditions in December and the partial government shutdown.
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