Biden, McCarthy reach US debt ceiling deal | InterPrac

Biden, McCarthy reach US debt ceiling deal

Biden, McCarthy reach US debt ceiling deal


Stocks jumped on Friday as traders grew hopeful that lawmakers will reach a deal to raise the US debt ceiling, avoiding a potentially catastrophic default.

Yesterday, US President Joe Biden and House Speaker Kevin McCarthy reached a tentative deal to raise the federal government’s $3.4 trillion debt ceiling days ahead of a deadline to avert a potentially catastrophic default.

The agreement on Saturday would raise the debt limit for two years while capping spending over that time, but risks angering both Democratic and Republican sides with the concessions made to reach it.

In response, House Speaker Kevin McCarthy stated, “[The deal] has historic reductions in spending, consequential reforms that will lift people out of poverty and into the workforce, and rein in government overreach. There are no new taxes and no new government programs.”

Overall, on Friday, the Dow Jones Industrial Average climbed 328.69 points, or 1 per cent to settle at 33,093.34. The S&P 500 gained 1.3 per cent to close at 4,205.45, and the Nasdaq Composite advanced 2.2 per cent to 12,975.69.

Intel and American Express rose 5.8 per cent and 4.1 per cent, respectively to lead the Dow higher. The S&P 500 tech and consumer discretionary sectors popped more than 2 per cent each.

The Nasdaq notched its fifth straight weekly gain, rising 2.5 per cent. The S&P 500 also posted a one-week advanced, advancing 0.3 per cent. The Dow was the laggard this week, losing 1 per cent.

And large-cap companies are outperforming small-cap companies, with the Russell 1000 index gaining 9.2 per cent compared to the Russell 2000's 0.7 per cent advance, driven by the success of big technology stocks. Investors are concerned about the sustainability of this narrow rally and the dominance of large-cap tech stocks in the market.

In commodity news, tensions rise as Saudi Arabia accuses Russia of pumping large volumes of cheaper crude into the market, undermining Riyadh's efforts to raise energy prices. The friction between the two largest oil producers is evident ahead of an upcoming OPEC+ meeting to decide on a production plan, with concerns about a slowing global economy affecting energy demand.

Overall, almost all US sectors closed higher overnight. Technology and Consumer Discretionary both soared, finishing over 2 per cent higher. Energy was the worst performer.


The SPI futures are pointing to a 0.98 per cent gain.


One Australian dollar at 7:10 AM is buying 65.22 US cents.


Iron ore futures are pointing to a 3.86 per cent gain.

Gold added 0.04 per cent. Silver gained 1.96 per cent. Copper jumped 2.62 per cent and oil rose 1.17 per cent.

Figures around the globe

Across the Atlantic, European markets closed higher. London’s FTSE added 0.74 per cent, Frankfurt gained 1.20 per cent while Paris closed 1.24 per cent higher.

In Asian markets, Tokyo’s Nikkei added 0.37 per cent, Hong Kong’s Hang Seng was closed while China’s Shanghai Composite closed 0.35 per cent higher.

On Friday, the Australian sharemarket closed 0.23 per cent higher at 7155.


Dalrymple Bay (ASX:DBI) is paying 5.025 cents unfranked
Hancock & Gore (ASX:HNG) is paying 0.5 cents fully franked
Infratil (ASX:IFT) is paying 11.7592 cents unfranked

Dividends payable

US Student Housing REIT (ASX:USQ)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.


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