US President Joe Biden said on Wednesday that he is confident that they will be able to reach an agreement on budget and noted that it would be catastrophic if the US failed to bay bills, per Reuters.

Additional takeaways

"We're going to come together because there is no alternative."

"This negotiation is about the outlines of what the budget will look like."

"Leaders all agree, we will not default."

"Group of negotiators met Tuesday night, will meet again Wednesday."

"Will be in close touch with negotiators during the trip."

"Will continue discussions until we reach agreement."

"Will have a news conference on Sunday on debt issue."

"Will not accept work requirements that will affect medical needs of people."

"There is a possibility of some work requirements."

Market reaction

The market mood remains relatively upbeat following these comments and the S&P 500 Index was last seen rising 0.4% on the day at 4,126.