HomeFinancial MarketsFutures Rise as Debt Ceiling Deal Set for Next Challenge

Futures Rise as Debt Ceiling Deal Set for Next Challenge

U.S. futures advanced during Tuesday’s morning session as investors wait for the U.S. debt-ceiling deal to be presented before Congress. Policymakers are under pressure to pass the legislation into law before the June 1 deadline so as to avert an unprecedented default that would have detrimental consequences for global markets.

Contracts on the S&P 500 edged 0.62% higher while those on the tech-heavy Nasdaq Composite index advanced by 1.39%. Futures listed on the Dow Jones Industrial Average slipped 0.02% lower.

While President Joe Biden and House Speaker Kevin McCarthy were able to reach a tentative agreement on Sunday to raise the government’s debt ceiling, the bill still has to be approved by Congress in order to be enacted into law. The deal will be presented to the House Rules Committee on Tuesday, after which it is expected to be passed on to the House of Representatives for a vote on Wednesday. It will then be passed to the Senate for another vote.

As investors await the final outcome of the debt ceiling agreement, focus is also being placed on the U.S. jobs report that is set to be released later in the week. Economists polled by Bloomberg estimate a drop in monthly payroll additions from 253,000 in April to 180,000.

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