Biden and McCarthy Reach Deal to Raise US Debt Ceiling, but Risk of Default Looms

President Joe Biden and House Majority Leader Kevin McCarthy have reached a deal to raise the US debt ceiling and avoid a default.[0] The agreement, which includes a two-year debt-limit increase, will be put to Congress for a vote on Wednesday.[0] Both Republican and Democratic support is needed for the bill to pass.[1] The deal was reached after weeks of negotiations and will keep non-defence discretionary spending about level with current levels over two years.[2] It will also impose new restrictions on certain government aid.[2] The agreement is not in favour of any one party and is aimed at benefiting the American people.[2] Treasury Secretary Janet Yellen has pushed back the earliest date of the debt default to 5 June, giving more time for the bill to pass.[3]

Despite the agreement, McCarthy left a Tuesday meeting telling Republicans that the two sides are nowhere near a deal.[4] The US runs the risk of default if an agreement is not reached within the next 10 days.[5] The bullish momentum in the stock market could be extinguished by the Federal Reserve, whose members are set to meet on 13-14 June to decide whether to continue hiking interest rates.[6]

In single-stock news, Marvell Technology surged more than 16% in pre-market trading after reporting Q1 net revenue above consensus and projecting fiscal 2024 artificial intelligence (AI) revenue to “at least double” from a year ago.[7] The Gap is up more than 10% after reporting an unexpected Q1 adjusted EPS profit.[7] Workday is up more than 8% after reporting Q1 subscription revenue above consensus and raising the lower end of its 2024 subscription revenue estimate.[7]

The Turkish lira fell to a fresh record low against the dollar after Turkey’s President Recep Tayyip Erdogan claimed victory in Sunday’s runoff presidential election, extending his term in office for another five years.[8] Erdogan has adopted a controversial policy of keeping interest rates low to tackle high inflation.[8] There was a 0.6% increase in the value of the dollar, which now stands at 20.09 lira.[8]

Brent crude experienced a 0.8% drop to $76.50 per barrel in the commodities market, while WTI crude decreased by 0.9% to $72.31 per barrel.[9] The price of gold dropped by 0.57% and is now valued at $1,963.20 per ounce.[10] Nike was the worst performer on the Dow Jones, falling 4% after an analyst downgraded the stock to a sell rating.[11] Shoe stocks have been coming under pressure following poor results from Foot Locker.[5] Shares of Micron Technology dropped as China accused the chipmaker of presenting a security risk, and Beijing banned it from being part of key infrastructure projects.[11]

0. “Hang Seng Index, ASX200, Nikkei 225: US Debt Ceiling Deal Delivers” FX Empire, 29 May. 2023,

1. “Stock futures rise after GOP and White House reach tentative U.S. debt ceiling deal: Live updates” CNBC, 30 May. 2023,

2. “Futures Rise On Debt Deal; Tesla, Nvidia In Focus” Investor’s Business Daily, 29 May. 2023,

3. “Stock Market News Today, 5/29/23 – Futures Higher as the U.S. Debt Limit Deal Nears Completion” TipRanks, 29 May. 2023,

4. “Media Stocks, Broader Markets Dip On Debt Ceiling Jitters, And It Could Get Worse” Deadline, 23 May. 2023,

5. “Dow Jones Falls As McCarthy Urges Biden To Beat This Addiction; DraftKings Pops On Upgrade As Apple Dips” Investor’s Business Daily, 22 May. 2023,

6. “A Look At The SPY Heading Into The Week With Biden’s Tentative Debt Ceiling Deal In Focus – SPDR S&P 500” Benzinga, 29 May. 2023,

7. “Markets Today: Stocks Slightly Higher on Signs of Progress in Debt Ceiling Talks” Barchart, 26 May. 2023,

8. “Markets Mixed Ahead of Debt-Ceiling Vote” Barron’s, 29 May. 2023,

9. “US Futures Rise, European Stocks Slip” Morningstar, 30 May. 2023,

10. “Stock market news today: Fed minutes show split on more rate hikes” Markets Insider, 24 May. 2023,

11. “Markets End Mixed Ahead of Debt Ceiling Meeting” Investopedia, 22 May. 2023,