Wall Street breathed a sigh of relief after the tentative agreement on raising the US debt ceiling was reached. Now the market is worried again about voting on the deal. Wall Street is opening today on a pessimistic note. The likelihood of a default is the main culprit of pessimism.

The US stock market opened a new trading with a mixed dynamic. The benchmark stock indices closed mixed and most of them lost earlier gains.The Dow Jones dropped by 50 points or 0.15%. The Nasdaq was the only index to lose in the green with a 0.32% gain. The S&P 500 closed flat at about 4,205.
The major stock indices traded lower in the New York pre-market. Their further trajectory will depend on US lawmakers and the voting results. The S&P 500 is expected to trade in the corridor between 4,150 and 4,220.
US stocks closed mixed on Tuesday because market sentiment voiced concern that American legislators could vote against raising the ceiling of the US federal debt of 31.4 trillion dollars.  
At the weekend, US President Joe Biden and House speaker Republican Kevin McCarthy made a tentative agreement to suspend the current debt ceiling and cap some budget spending.
On Tuesday, McCarthy said that the deal should be light for Republicans and it was likely to be passed, though some right Republicans were against the bipartisan deal.
The House Rules Committee began reviewing the 99-page bill. The White House said that Joe Biden had spoken to both progressive and moderate Democrats in Congress.
The protracted decision weighed heavily on stocks. The only ray of optimism was AI-related stocks which surged on Nvidia's optimism.
The rally around the chipmaker has been going on for days. Last week, Nvidia announced that it was aiming for record profits. Earlier this week, the company unveiled its plans to build a super-powerful computer to further develop AI technology.
The news boosted Nvidia shares and enabled the company’s market value to top 1 trillion dollars. However, the company’s profit inched down after the record was set.
The chipmaker’s shares grew by 3.0% and its market capitalization dipped to about 991 billion dollars, a bit less than the market value of six top US companies worth 1 trillion dollars or more.
Shares of Digital Realty rose by 1.7% after a 14.6% climb in the previous two sessions on expectations that data centers will benefit from AI computing.
The Philadelphia SE Semiconductor Index closed up 0.1%. It gained 2.8% intraday, reaching its highest level since February 2022, but later pulled back. Tesla shares also rose by 3.5% following Elon Musk's trip to Beijing for the first time in three years.
Only three of the 11 sectors of the S&P 500 were higher, while falling stocks outweighed gains in both the S&P 500 and the Nasdaq. At the same time, both Wall Street benchmarks were still set for monthly growth in May by the end of trading.
Raising rates by the Federal Reserve to combat stubborn inflation is holding back economic growth and corporate profits. Data on Tuesday showed that consumer confidence rose more-than-expected in May, which could fuel speculation that the Fed may go ahead with rate hikes to fight inflation.
Futures traders put a 65% chance of a 25 basis-point rate hike at the policy meeting slated for June 13-14.
As early as Wednesday, futures for US stock indices fell sharply as the deal to raise the government debt ceiling came to a decisive moment: the vote.
A bill to remove the $31.4 trillion US debt ceiling and new federal spending cuts was sent to the House of Representatives for debate on Tuesday. Legislators are expected to pass a vote later today.
After the document is adopted by the House of Representatives, it will be sent to the Senate, where the debate could last until the weekend. All this time, the potential US default will be the Sword of Damocles hanging over the stock market.
The situation is complicated by the set deadline. At this stage, according to the statement of US Secretary of the Treasury Janet Yellen, the deadline is fixed for June 5. Besides, rating agencies are closely monitoring the developments and may well downgrade the US credit rating, even if the bill is voted on time.

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