Wall Street rises as Washington moves to avoid default

Wall Street is rising for the first time after Washington reached a tentative deal to avoid a potentially disastrous default on its debt.

The S&P 500 rose 0.6% in early trading Tuesday and was near its highest level in nine months. The Dow Jones industrial average rose slightly, while enthusiasm for artificial intelligence helped the Nasdaq composite lead the market with a 1.2% gain.

President Joe Biden and House Speaker Kevin McCarthy are working to win votes for a deal reached over the weekend to allow the US government to borrow more money.

Biden spent part of the Memorial Day holiday on the phone, calling lawmakers from both parties, while the president worked to deliver the ballots. Several far-right conservatives are criticizing the deal for falling short of the deep spending cuts they wanted, while liberals are criticizing policy changes such as new work requirements for older Americans in the food aid program.

A key test comes Tuesday afternoon when the House Rules Committee is scheduled to consider the package and vote to send it to the full House for a vote expected on Wednesday.

Connect with the Voice of America! Subscribe to our channel Youtube and activate notifications, or follow us on social networks: Facebook,TwitterandInstagram.