Investors Seek Protection in Case of Debt-Ceiling Debacle

Many are pulling cash from stock funds and seeking safety in Treasurys that don’t mature for several years

Some investors are betting the debt-ceiling stalemate could inject a new dose of volatility into markets. 

As the U.S. government lurches closer to possibly missing debt payments—which Treasury Secretary Janet Yellen said this past week would “crack open the foundations upon which our financial system is built”—the S&P 500 is up 9.2% this year at its highest levels since August, and stock-market volatility has subsided to lows not seen since 2021.