{"id":3996,"date":"2023-05-30T04:05:17","date_gmt":"2023-05-30T09:05:17","guid":{"rendered":"https:\/\/embarrdowns.com\/biden-and-mccarthy-reach-deal-to-raise-us-debt-ceiling-but-risk-of-default-looms\/"},"modified":"2023-05-30T04:05:17","modified_gmt":"2023-05-30T09:05:17","slug":"biden-and-mccarthy-reach-deal-to-raise-us-debt-ceiling-but-risk-of-default-looms","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/biden-and-mccarthy-reach-deal-to-raise-us-debt-ceiling-but-risk-of-default-looms\/","title":{"rendered":"Biden and McCarthy Reach Deal to Raise US Debt Ceiling, but Risk of Default Looms"},"content":{"rendered":"

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

Despite the agreement, McCarthy left a Tuesday meeting telling Republicans that the two sides are nowhere near a deal.[4]<\/a><\/sup> The US runs the risk of default if an agreement is not reached within the next 10 days.[5]<\/a><\/sup> 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]<\/a><\/sup> <\/p>\n

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 \u201cat least double\u201d from a year ago.[7]<\/a><\/sup> The Gap is up more than 10% after reporting an unexpected Q1 adjusted EPS profit.[7]<\/a><\/sup> 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]<\/a><\/sup> <\/p>\n

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]<\/a><\/sup> Erdogan has adopted a controversial policy of keeping interest rates low to tackle high inflation.[8]<\/a><\/sup> There was a 0.6% increase in the value of the dollar, which now stands at 20.09 lira.[8]<\/a><\/sup> <\/p>\n

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]<\/a><\/sup> The price of gold dropped by 0.57% and is now valued at $1,963.20 per ounce.[10]<\/a><\/sup> Nike was the worst performer on the Dow Jones, falling 4% after an analyst downgraded the stock to a sell rating.[11]<\/a><\/sup> Shoe stocks have been coming under pressure following poor results from Foot Locker.[5]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

0. <\/span>“Hang Seng Index, ASX200, Nikkei 225: US Debt Ceiling Deal Delivers” FX Empire, 29 May. 2023, https:\/\/www.fxempire.com\/forecasts\/article\/hang-seng-index-asx200-nikkei-225-us-debt-ceiling-deal-delivers-1350208<\/a><\/a><\/p>\n

1. <\/span>“Stock futures rise after GOP and White House reach tentative U.S. debt ceiling deal: Live updates” CNBC, 30 May. 2023, https:\/\/www.cnbc.com\/2023\/05\/29\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

2. <\/span>“Futures Rise On Debt Deal; Tesla, Nvidia In Focus” Investor’s Business Daily, 29 May. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-debt-ceiling-deal-ai-boom-lifts-market-rally<\/a><\/a><\/p>\n

3. <\/span>“Stock Market News Today, 5\/29\/23 \u2013 Futures Higher as the U.S. Debt Limit Deal Nears Completion” TipRanks, 29 May. 2023, https:\/\/www.tipranks.com\/news\/stock-market-news-today-5-29-23-futures-higher-as-u-s-debt-limit-deal-nears-completion<\/a><\/a><\/p>\n

4. <\/span>“Media Stocks, Broader Markets Dip On Debt Ceiling Jitters, And It Could Get Worse” Deadline, 23 May. 2023, https:\/\/deadline.com\/2023\/05\/media-stocks-markets-debt-ceiling-default-risk-1235377482\/<\/a><\/a><\/p>\n

5. <\/span>“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, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-falls-as-kevin-mccarthy-urges-joe-biden-to-beat-debt-ceiling-addiction-draftkings-stock-soars-on-upgrade-apple-stock-falls-on-downgrade<\/a><\/a><\/p>\n

6. <\/span>“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, https:\/\/www.benzinga.com\/government\/23\/05\/32615957\/a-look-at-the-spy-heading-into-the-week-with-bidens-tentative-debt-ceiling-deal-in-focus<\/a><\/a><\/p>\n

7. <\/span>“Markets Today: Stocks Slightly Higher on Signs of Progress in Debt Ceiling Talks” Barchart, 26 May. 2023, https:\/\/www.barchart.com\/story\/news\/17224166\/markets-today-stocks-slightly-higher-on-signs-of-progress-in-debt-ceiling-talks<\/a><\/a><\/p>\n

8. <\/span>“Markets Mixed Ahead of Debt-Ceiling Vote” Barron’s, 29 May. 2023, https:\/\/www.barrons.com\/articles\/debt-deal-global-markets-stocks-754b47e0<\/a><\/a><\/p>\n

9. <\/span>“US Futures Rise, European Stocks Slip” Morningstar, 30 May. 2023, https:\/\/www.morningstar.com\/news\/dow-jones\/202305301597\/us-futures-rise-european-stocks-slip<\/a><\/a><\/p>\n

10. <\/span>“Stock market news today: Fed minutes show split on more rate hikes” Markets Insider, 24 May. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-news-fed-minutes-split-more-interest-rate-hikes-2023-5<\/a><\/a><\/p>\n

11. <\/span>“Markets End Mixed Ahead of Debt Ceiling Meeting” Investopedia, 22 May. 2023, https:\/\/www.investopedia.com\/markets-end-mixed-ahead-of-debt-ceiling-meeting-7501395<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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

Despite the agreement, McCarthy left a Tuesday meeting telling Republicans that the two sides are nowhere near a deal.[4]<\/a><\/sup> The US runs the risk of default if an agreement is not reached within the next 10 days.[5]<\/a><\/sup> 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]<\/a><\/sup> <\/p>\n

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 \u201cat least double\u201d from a year ago.[7]<\/a><\/sup> The Gap is up more than 10% after reporting an unexpected Q1 adjusted EPS profit.[7]<\/a><\/sup> 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]<\/a><\/sup> <\/p>\n

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]<\/a><\/sup> Erdogan has adopted a controversial policy of keeping interest rates low to tackle high inflation.[8]<\/a><\/sup> There was a 0.6% increase in the value of the dollar, which now stands at 20.09 lira.[8]<\/a><\/sup> <\/p>\n

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]<\/a><\/sup> The price of gold dropped by 0.57% and is now valued at $1,963.20 per ounce.[10]<\/a><\/sup> Nike was the worst performer on the Dow Jones, falling 4% after an analyst downgraded the stock to a sell rating.[11]<\/a><\/sup> Shoe stocks have been coming under pressure following poor results from Foot Locker.[5]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

0. <\/span>“Hang Seng Index, ASX200, Nikkei 225: US Debt Ceiling Deal Delivers” FX Empire, 29 May. 2023, https:\/\/www.fxempire.com\/forecasts\/article\/hang-seng-index-asx200-nikkei-225-us-debt-ceiling-deal-delivers-1350208<\/a><\/a><\/p>\n

1. <\/span>“Stock futures rise after GOP and White House reach tentative U.S. debt ceiling deal: Live updates” CNBC, 30 May. 2023, https:\/\/www.cnbc.com\/2023\/05\/29\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

2. <\/span>“Futures Rise On Debt Deal; Tesla, Nvidia In Focus” Investor’s Business Daily, 29 May. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-debt-ceiling-deal-ai-boom-lifts-market-rally<\/a><\/a><\/p>\n

3. <\/span>“Stock Market News Today, 5\/29\/23 \u2013 Futures Higher as the U.S. Debt Limit Deal Nears Completion” TipRanks, 29 May. 2023, https:\/\/www.tipranks.com\/news\/stock-market-news-today-5-29-23-futures-higher-as-u-s-debt-limit-deal-nears-completion<\/a><\/a><\/p>\n

4. <\/span>“Media Stocks, Broader Markets Dip On Debt Ceiling Jitters, And It Could Get Worse” Deadline, 23 May. 2023, https:\/\/deadline.com\/2023\/05\/media-stocks-markets-debt-ceiling-default-risk-1235377482\/<\/a><\/a><\/p>\n

5. <\/span>“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, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-falls-as-kevin-mccarthy-urges-joe-biden-to-beat-debt-ceiling-addiction-draftkings-stock-soars-on-upgrade-apple-stock-falls-on-downgrade<\/a><\/a><\/p>\n

6. <\/span>“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, https:\/\/www.benzinga.com\/government\/23\/05\/32615957\/a-look-at-the-spy-heading-into-the-week-with-bidens-tentative-debt-ceiling-deal-in-focus<\/a><\/a><\/p>\n

7. <\/span>“Markets Today: Stocks Slightly Higher on Signs of Progress in Debt Ceiling Talks” Barchart, 26 May. 2023, https:\/\/www.barchart.com\/story\/news\/17224166\/markets-today-stocks-slightly-higher-on-signs-of-progress-in-debt-ceiling-talks<\/a><\/a><\/p>\n

8. <\/span>“Markets Mixed Ahead of Debt-Ceiling Vote” Barron’s, 29 May. 2023, https:\/\/www.barrons.com\/articles\/debt-deal-global-markets-stocks-754b47e0<\/a><\/a><\/p>\n

9. <\/span>“US Futures Rise, European Stocks Slip” Morningstar, 30 May. 2023, https:\/\/www.morningstar.com\/news\/dow-jones\/202305301597\/us-futures-rise-european-stocks-slip<\/a><\/a><\/p>\n

10. <\/span>“Stock market news today: Fed minutes show split on more rate hikes” Markets Insider, 24 May. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-news-fed-minutes-split-more-interest-rate-hikes-2023-5<\/a><\/a><\/p>\n

11. <\/span>“Markets End Mixed Ahead of Debt Ceiling Meeting” Investopedia, 22 May. 2023, https:\/\/www.investopedia.com\/markets-end-mixed-ahead-of-debt-ceiling-meeting-7501395<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":3995,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3996"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=3996"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/3995"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=3996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=3996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=3996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}