U.S. stock futures point higher after debt ceiling deal

US stock futures rose in modest holiday trade on Monday as legislators in Washington reached an agreement to raise the $31.4 trillion debt ceiling and avoid a potentially catastrophic default.

By 11:32 GMT, the Dow futures contract had gained 60 points, or 0.18%, the S&P 500 futures had gained 10 points, or 0.23%, and the Nasdaq 100 futures had gained 57 points, or 0.39%.

The stock market will be closed on Monday in observance of Memorial Day.

The debt ceiling agreement, reached over the weekend by President Biden and Republican House Speaker Kevin McCarthy after months of political haggling, would lift the debt ceiling until 2025 and curb non-defence

Both Biden and McCarthy stated that the agreement is the result of compromise, despite the fact that certain members of their respective parties have already criticised its contents.

The so-called Freedom Caucus, a group of hard-line conservative Republicans, criticised the agreement for failing to include a number of significant budget cuts. Meanwhile, left-wing Democrats have slammed Biden for caving on too many crucial issues.

The plan is expected to be voted on later this week by the Republican-controlled House of Representatives and the Democratic-controlled Senate. Meanwhile, the clock continues to tick towards June 5, when the Treasury Department anticipates the federal government to run out of funds to pay all of its debts.

expenditure for the next two years.