Investing.com -- U.S. stocks were mixed as investors awaited clarity on the outcome of debt ceiling negotiations.
President Joe Biden was expected to meet with House Speaker Kevin McCarthy, a California Republican, later today as aides spent the weekend trying to sew up an agreement. The deadline for Congress to raise the ceiling or suspend it is quickly approaching, with some estimates saying the government will run out of options to continue paying its obligations as early as June 1.
Economists and administration officials have said a default could create chaos in financial markets.
A default would cause chaos in financial markets and spike interest rates.
The uncertainty is hanging over markets as the Federal Reserve prepares to meet again next month to decide the next move on interest rates. Three-quarters of futures tradersto hold rates steady in June, a pause so policy makers can assess the progress of their actions so far.
St. Louis Fed President James Bullard said he foresees two more rate increases this year, while his counterpart at the Minneapolis Fed, Neel Kashkari, expressed support for a pause in June.
The Fed will see a key data point on Friday in the personal consumption and expenditure index for April, an inflation gauge it closely monitors.
Biden returned to the U.S. on Sunday, cutting short an Asia trip after the Group of Seven meeting of world leaders to finish the negotiations on the debt ceiling deal.
On Sunday, China banned some sales of Micron Technology Inc (NASDAQ: MU ) chips to key industries in its country, citing national security. Shares of Micron fell 3.3%.
In deals on Monday, Chevron (NYSE: CVX ) announced plans to buy Colorado and Texas producer PDC Energy (NASDAQ: PDCE ) for $6.3B, and Ironwood Pharmaceutical announced plans to buy Swiss biotech VectivBio for about $1B. Shares of PDC Energy rose 8.6% and shares of VectivBio rose 36%
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