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

Investing.com -- U.S. stock futures moved higher in subdued holiday trading on Monday after lawmakers in Washington reached a deal to lift the $31.4 trillion debt limit and avert a possible catastrophic default.

By 07:32 ET (11:32 GMT), the Dow futures contract rose by 60 points or 0.18%, S&P 500 futures added 10 points or 0.23%, and Nasdaq 100 futures jumped by 57 points or 0.39%. 

Stock markets will be closed on Monday for Memorial Day.

The debt ceiling agreement, forged by President Biden and Republican House Speaker Kevin McCarthy over the weekend after an extended period of political wrangling, will raise the debt ceiling until 2025 and cap non-defense spending for the next two years.

Both Biden and McCarthy said the accord is a product of compromise, although its terms have already received backlash from some members of their respective parties.

The so-called Freedom Caucus - a collection of hard-line conservative Republicans - criticized the deal for not including a number of deep spending cuts. Leftwing Democrats, meanwhile, have chastised Biden for conceding on too many key issues.

The Republican-controlled House of Representatives and the Democratic-controlled Senate are anticipated to vote on the deal later this week. Meanwhile, the clock is still ticking toward June 5, which is when the Treasury Department expects that the federal government will run out of money to pay all its bills.