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After several rounds of negotiations, President Joe Biden and
top congressional Republican Kevin McCarthy are closing in on a
deal to raise the government's $31.4 trillion debt limit for two
years, while capping spending on most items.
The S&P 500 index and the Dow Jones Industrial Average are on
course for their worst weekly performance in over two months as
debt ceiling talks have been dragging on in Washington even as
the June 1 deadline looms large.
The Dow has fallen for five straight sessions.
Meanwhile, investors await the Commerce Department's personal
consumption expenditures (PCE) price index figures for April,
considered to be the Federal Reserve's preferred inflation
gauge. The reading is due at 0830 ET.
Excluding the volatile food and energy components, the PCE price
index is expected to have risen 0.3% last month, the same as in
March.
The figures will offer clarity on the impact of the Fed's
aggressive tightening campaign on consumer spending as Americans
hit by high inflation become increasingly price-sensitive.
Separately, the University of Michigan's final May reading of
consumer sentiment is expected to remain unchanged at 57.7.
At 5:17 a.m. ET, Dow e-minis were down 54 points, or 0.16%, S&P
500 e-minis were down 6 points, or 0.14%, and Nasdaq 100 e-minis
were up 3 points, or 0.02%.
Among early movers, Ford Motor Co gained 1.0% as it allowed its
electric vehicle owners to gain access to more than 12,000 Tesla
Inc Superchargers in North America in early 2024. Tesla shares
rose 0.5%.
Apparel retailer Gap Inc jumped 11.7% in premarket trading after
reporting a surprise profit for the first quarter on Thursday.
Chipmaker Marvell Technology Inc jumped 15.8% after it forecast
its annual artificial intelligence (AI) revenue would double.
This comes just as shares of the world's most valuable
chipmaker, Nvidia Corp, hit a record high on Thursday after its
bumper forecast. Nvidia shares were down 0.3% in premarket
trading.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Vinay
Dwivedi)
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