U.S. equities were higher for a second straight day on indications an agreement to increase the U.S. debt ceiling ahead of a potential government default next month may be closer. The S&P 500 and Nasdaq closed at their highest level since August. Bond yields rose as comments from Federal Reserve officials raised speculation policymakers will continue to boost interest rates to fight inflation. 

Take-Two Interactive (TTWO) was the best-performing stock in the S&P 500 as the video game publisher posted better-than-expected revenue and predicted a jump in future growth. Shares of Walmart (WMT) gained after  the big retailer exceeded profit and sales estimates and lifted its outlook. Bath & Body Works (BBWI) also beat forecasts and raised its guidance, and shares rose.

Netflix (NFLX) shares added 9% after the streaming media firm reported its ad-supported service had five million monthly active users (MAU). Shares of Walt Disney (DIS) and Paramount Global (PARA) also climbed. Alphabet (GOOGL) shares advanced when the Supreme Court decided not to rule on a case brought against the company that challenged legal immunity for internet providers. 

Gold prices tumbled, sending shares of Newmont Corporation (NEM) and rival gold miners lower. Procter & Gamble (PG) shares declined on an analyst downgrade. Shares of UnitedHealth Group (UNH), Molina Healthcare (MOL), and other managed care providers slid on concerns a deal to lift the debt ceiling may include changes in Medicaid.

Oil futures lost more than 1%. The U.S. dollar moved higher versus the euro, pound, and yen. Prices for most major cryptocurrencies gave up earlier gains and turned negative.