Debt Ceiling Deal Update
What’s in Today’s Report:
- Debt Ceiling Deal Update
- AI May Be Great, But Fundamentals Matter Too
- Weekly Economic Cheat Sheet – Summer Rate Hike Back in Play
Stock futures are higher and Treasury yields are falling this morning amid renewed optimism for a debt ceiling deal.
President Biden and Speaker McCarthy agreed in principle to a two-year debt ceiling extension, which markets expect to be signed before the June 5th “X date.”
Eurozone Economic Sentiment dropped to 96.5 vs. (E) 99.4, underscoring worries about growth overseas but the debt ceiling deal optimism is overshadowing worries about the economy this morning.
Today, there are several economic reports to watch including the Case-Shiller Home Price Index (E: -0.1%), FHFA House Price Index (E: 0.3%), and Consumer Confidence (E: 100.0).
Additionally, there is one Fed speaker: Barkin (1:00 p.m. ET), however investors will remain primarily focused on the debt ceiling deal and as long as news flow surrounding the final negotiations remains positive, risk on money flows should continue today.