The United States stock market recovered sharply on May 17 and May 18 on hopes that the debt ceiling agreement could be reached, but the market gave back some of its gains on May 19 on reports of a temporary halt in the talks.
The U.S. Dollar Index (DXY), which had been rising for the past three days, turned down on May 19 after Federal Reserve Chair Jerome Powell hinted at an end to the rate hikes. While speaking at a conference in Washington D.C., Powell said that stresses in the banking system may restrict the need to raise rates as high as they “would have otherwise to achieve our goals.”