What you need to know…

The S&P 500 Index ($SPX) (SPY) Tuesday was unchanged, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.15%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.40%.

Stock indexes Tuesday settled mixed, with the Nasdaq 100 posting a 13-1/2 month high.  The broader market found support Tuesday after a tentative agreement was reached over the long holiday weekend to raise the U.S. debt ceiling.  However, the euphoria over the agreement faded since the agreement will reduce spending and fiscal stimulus for the U.S. economy, and also boosted the chances of a Fed rate hike in June.

White House negotiators and Republican leaders led by House Speaker McCarthy agreed to a tentative deal to suspend the debt ceiling until January 2025 and cap federal spending for the next two years.  The House is expected to vote on the bill Wednesday before it goes to the Senate for a vote.

Tuesday’s U.S. economic news was mixed for stocks. However, a... Read more