Argentina’s stocks surged by 6% following U.S. Treasury Secretary Scott Bessent’s commitment to provide stabilization options to President Javier Milei, including the possibility of currency swap lines and purchasing U.S. dollar-denominated debt. Dollar bonds due 2035 soared almost seven cents after Bessent’s remarks, reaching above 54 cents. The move would complement Argentina’s existing $20 billion IMF program. However, concerns over political instability persist due to recent events, including a bribery scandal involving Milei’s sister and a loss in a key provincial election. Economic challenges remain, with analysts predicting further contraction in Q3 and increased unemployment. Milei faces a significant political test in the upcoming midterm elections on October 26.

Read more at Quiver Quantitative: Argentina Stocks Surge 6% as U.S. Signals Support Amid Milei’s Economic Struggles