The U.S. Senate voted 63-36 to approve the debt ceiling deal forged by Joe Biden and U.S. House Speaker Kevin McCarthy. It previously passed the House by a 314-117 vote, with both Democrats and Republicans voting for it and opposing it.
Following the U.S. Senate’s action to send the legislation to Biden’s desk, averting a default on U.S. debt, the stock market reacted.
“The Dow Jones Industrial Average jumped 328 points, or 1%. The S&P 500 climbed 0.9%, and the Nasdaq Composite advanced 1.1%,” noted CNBC.
“The major averages were higher for the week. The S&P 500 and Nasdaq were up more than 1% and 2%, respectively, week to date. The Dow’s Friday advance pushed it into positive territory, last up 0.7% week to date. The Nasdaq is on pace to end its sixth straight week higher, a streak length not seen for the technology-heavy index since 2020.”
Biden’s U.S. Department of the Treasury Secretary Janet Yellen said the country would default on its debt by June 5 if a deal wasn’t reached.
Republicans were angered by the lack of substantial cuts to the budget and an increase in spending of $4 trillion, which was a non-starter for fiscal conservatives.
On the other hand, Democrats were angered that the budget didn’t have enough funding for social programs and “climate change” initiatives.
Regardless, Congress struck a deal, averting a default for the next couple of years.