Futures rise on tentative debt ceiling deal, Nvidia gains

U.S. stock index futures rose on Tuesday as lawmakers tentatively agreed to raise the nation’s debt limit to avert a default, while shares of Nvidia led an early rally among chipmakers and AI-related firms.

U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the debt ceiling and cap some federal spending.

The U.S. House Rules Committee said it will meet at 3:00 p.m. ET (1900 GMT), to discuss the debt ceiling bill.

A handful of Republican lawmakers have said they will oppose it, in a sign that the bipartisan agreement could face a rocky path through Congress.

Reflecting investor optimism, the cost of insuring exposure to a U.S. debt default fell further on Tuesday, while yields on longer-dated U.S. Treasuries fell.

“While the initial reaction is likely to be positive, sentiment will be tempered by the fact that the deal is not yet over the line,” said Richard Hunter, head of markets at interactive investor.

This report’s information was first seen on REUTERS; to read more, click this link.