US stocks jumped Friday on reports that negotiators representing President Joe Biden and Republican leader Kevin McCarthy are nearing a deal to raise the country's debt ceiling, a crucial step in avoiding a US debt default.
Tech stocks surged, leading the Nasdaq Composite sharply higher, and the Dow Jones Industrial Average scored its first win after falling over the past five sessions. Multiple news reports Friday said Biden and House Speaker McCarthy were close to a deal to lift the $31 trillion debt ceiling for two years. Lawmakers have been racing against a June 1 deadline the Treasury Department has said could be the date when it will run out of cash to pay the country's bills.
An emerging deal may essentially freeze government spending on domestic programs and slightly increase funding for the military and veterans affairs, . Republicans have been pushing for spending cuts while Democrats want to preserve funding for education and environmental protection.
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