NEW YORK (TheStreet) -- U.S. stocks have soared the past two trading days on prospects that Congress will raise the nation's borrowing limit, but late Friday afternoon it was clear that Republicans and President Obama had not reached an agreement.
Following the S&P 500's second-best performance in 2013, reports emerged Thursday evening that the president had rejected a short-term deal to raise the debt limit. Futures plummeted on the news, but regained some momentum after Republicans announced that negotiations were still ongoing and that neither party had agreed or disagreed to a deal.
Late Friday afternoon, the talks were still ongoing.
White House Press Secretary Jay Carney said the president already met with Senate Republicans and both parties of the House, but said they will "broadly continue to have conversations."House Speaker John Boehner's spokesman, Michael Steel, issued a statement that was similar to Carney's comments: "The President and the Speaker spoke by telephone a few minutes ago. They agreed that we should all keep talking." The slow pace of negotiations hasn't rattled investors as they view any type of discussion a major development, as opposed to the 11-day government shutdown which has resulted in few closed-door meetings between both parties. Market observers through the weekend will continue to monitor progress on the debt-ceiling negotiations as analysts have said a government default would be catastrophic to markets and the economy. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux