US stocks traded mixed on Tuesday as investors await completion of the debt ceiling deal.
The US Treasury has indicated that it could run out of money by June 5, so the clock is ticking.
Continued excitement surrounding artificial intelligence helped power the Nasdaq higher.
US stocks finished mixed on Tuesday, after paring earlier gains as investors await completion of the recent debt ceiling deal made between House Speaker Kevin McCarthy and President Joe Biden.
The deal would raise the debt ceiling until January 2025 and includes various spending cuts and deficit reduction measures, including keeping non-defense discretionary spending roughly flat in 2024, with only a 1% increase in 2025.
The deal will allow the US to avoid the fast-approaching "X-date," when the Treasury runs out of money to pay its bills. Treasury Secretary Janet Yellen estimates that day could come on June 5.
The deal still has to be voted on and passed in the House and Senate chambers of Congress before going to Biden for his signature. And several Republicans voiced opposition to the deal on Tuesday, threatening prospects of its passage.
Meanwhile, artificial intelligence stocks continued to jump on Tuesday, with shares of Nvidia jumping about 3% to a record high. The stock briefly hit a $1 trillion valuation for the first time ever.
Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:
S&P 500: 4,205.52, unchanged
Dow Jones Industrial Average: 33,042.78, down 0.15% (50.56 points)
Nasdaq Composite: 13,017.43, up 0.32%
Here's what else is happening this morning:
Nvidia stock surged 4% after the company unveiled new artificial intelligence products over the weekend, including the DGX Gh200 AI Supercomputer.
Microsoft's market capitalization could surge by $300 billion thanks to the rise of AI and its exposure to ChatGPT, according to Wedbush.
Wharton professor Jeremy Siegel doesn't see the mania around AI stocks as a bubble — and said it's impossible to predict where these mega-cap tech stocks will peak.
Steve Cohen's Point72 fund likely scored a swift $100 million gain on its Nvidia stock over the past two months.
Elon Musk is once again ringing the alarm on the US real estate sector. "Commercial real estate is melting down fast. Home values next," the Tesla and SpaceX chief tweeted on Monday.
US housing prices increased 4.3% in the first quarter of the year, but a bifurcated market means notable geographical areas of strength and weakness.
In commodities, bonds and crypto:
Gold rose 1.75% to $1,978.40 per ounce.
The yield on the 10-year Treasury fell 11 basis points to 3.69%.
Bitcoin rose 0.45% to $27,869, while ether jumped 0.84% to $1,908.
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