US stock indexes are rising on the debt ceiling agreement. The Dow Jones rises as a result of the positive developments on the debt ceiling.
US Stock Indices Jump on quiet holiday and good news on Debt Ceiling Agreement
On Monday, after legislators in Washington secured an agreement to raise its $31.4 trillion debt ceiling. And prevent a potential disastrous default, US stock market futures rose in muted holiday trade.
The Dow contract for futures increased by 60 points or 0.18 percent around 07:32 ET (11:32 GMT). The S&P 500 index increased by 10 points or 0.23%, while the Nasdaq 100 futures rose by 57 points or 0.39%.
Due to Memorial Day, the stock exchanges will be shut on Monday.
The US debt ceiling will be raised until 2025 under the deal reached over the weekend by Joe Biden and the Kevin McCarthy. Non-defense expenditure will be capped over a period of two years.
Although the agreement’s provisions have already drawn criticism from certain members on the US parties in question. While Biden and McCarthy claimed that it was the result of cooperation.
The accord was criticized by the referred to as Freedom Caucus, a group of very conservative Republican. For leaving out several areas of significant expenditure cutbacks. Meanwhile, left-leaning Democrats were critical of Biden for making a lot of significant concessions.
During this week, it is expected that both the Democratically-controlled Senate. And the Republican-led House of Representatives will vote on the agreement. The Treasury Department predicts that by June 5, the US government is going to run out of funds to fulfil all of its payments, thus time is still running out.
