Here's how the debt-ceiling deal can hurt stock prices while disrupting the bond market

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Also, the debt ceiling deal's effect on thousands of people as benefits are cut, bad and good news from retailers, financial planning and retirement locations.

President Joe Biden is expected to sign legislation into law to raise the federal debt ceiling and avert a potential default on U.S. Treasury securities. The Senate passed the legislation Thursday night after the House of Representatives approved it on Wednesday.

Early market action Friday signaled relief among investors, but the timing of the legislation could make for rough rides ahead for debt and equity markets. Human consequences of the debt-ceiling deal When the U.S. government increases borrowings quickly, its rising demand for liquidity leads to an increase in interest rates, so consumers may also be feeling more of a pinch through the end of 2023.

Retail saga Retail earnings season neared its end this week with a flurry of reports, summed up here by MarketWatch’s investing- and corporate-news editor Ciara Linnane: A bubble for Nvidia and maybe for AI, but not for the full stock market Investors’ recent focus on artificial intelligence has sent shares of Nvidia Corp. NVDA sky-high. The stock is up 172% this year and now trades for 22.1 times the consensus revenue estimate for the next 12 months among analysts polled by FactSet, and a forward price-to-earnings ratio of 49.3.

 

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