The Nasdaq led gains among Wall Street’s main indexes on Tuesday, boosted by shares of Nvidia, amid optimism about lawmakers tentatively agreeing to raise the nation’s debt limit to avert a default.
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.
“The market is cautiously pricing in that the deal has been done,” said Thomas Hayes, chairman at Great Hill Capital LLC.
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.