Stock market today: Live updates
Biden Administration and Republican Lawmakers Agree on Raising Debt Ceiling
After intense negotiations over the weekend, the Biden administration and Republican lawmakers have reached a tentative agreement on raising the U.S. debt ceiling, causing stock futures to rise on Monday night.
The Dow Jones Industrial Average added 81 points, or 0.3%, while S&P 500 futures gained 0.3% and Nasdaq-100 futures climbed 0.4%.
Both President Joe Biden and House Majority Leader Kevin McCarthy reached an agreement to raise the debt ceiling and avoid a default, with Congress set to vote on the legislation as early as Wednesday. Lawmakers have not signaled that they intended to return to Capitol Hill early to work on the deal. Both Republican and Democratic support is needed for the bill agreement to pass.
The agreement comes just days before the “X date” on June 5, which is the earliest date the Treasury Department has signaled the U.S. could default on debt obligations.
The long negotiations between the White House and congressional leaders raised concern among investors that a default on U.S. debt could take place, however, with the agreement in place, markets are expected to be more stable moving forward.
Investors will also be watching for May jobs data out on Friday, as well as the April Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics which will be released on Wednesday. HP Inc and Salesforce are among the companies scheduled to release their corporate earnings this week.
FAQs:
1. What is the debt ceiling?
– The debt ceiling is a legal limit on the amount of debt that the U.S. government can have outstanding. If the debt ceiling is not raised, the government will not be able to borrow more money to pay its bills, potentially causing the U.S. to default on its debts.
2. Why was there concern about a potential default on U.S. debt?
– The long negotiations between the White House and congressional leaders over raising the debt ceiling raised concerns among investors that a default on U.S. debt could take place. A default on U.S. debt would have severe and long-lasting consequences for the economy and markets.
3. What is the “X date”?
– The “X date” is the earliest date by which the Treasury Department has signaled that the U.S. could default on its debt obligations if the debt ceiling is not raised.
4. When will Congress vote on the debt ceiling agreement?
– Congress is set to vote on the legislation as early as Wednesday. Both Republican and Democratic support is needed for the bill agreement to pass.
5. What will investors be watching for this week?
– Investors will be watching for May jobs data out on Friday, as well as the April Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics which will be released on Wednesday. Corporate earnings from HP Inc and Salesforce are also scheduled to be released this week.
Live Updates on the Stock Market Today
Stock futures rose on Monday night as the Biden administration and Republican lawmakers reached a tentative deal on raising the U.S. debt ceiling. The Dow Jones Industrial Average futures added 81 points, or 0.3%, while the S&P 500 futures gained 0.3%. Nasdaq-100 futures climbed 0.4%. Congress is set to vote on the legislation as early as Wednesday, with both Republican and Democratic support needed for the bill agreement to pass. The agreement comes just days before the so-called “X date” on June 5, which is the earliest date the Treasury Department has signaled the U.S. could default on debt obligations. The initial compromise was first announced on Saturday evening. The long negotiations between the White House and congressional leaders raised concern among investors that a default on U.S. debt could take place. Stocks closed higher on Friday. The Nasdaq Composite and S&P 500 finished last week with gains. Investors will also turn their attention to May jobs data out on Friday, while the April Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics will be released on Wednesday. Corporate earnings from HP Inc and Salesforce are due on Tuesday and Wednesday, respectively.