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CNBC Daily Open: Next Stop, Congress

Cynthia Johnson | The Chronicle Collection | Getty Images

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

  • U.S. President Joe Biden and House Speaker Kevin McCarthy might have reached a deal Sunday to raise the U.S. $31.4 trillion debt ceiling, but a handful of hard-right Republican lawmakers said on Monday they would oppose the deal, in a sign that the bipartisan agreement could face a rocky path through Congress before the U.S. runs out of money next week. Central to the deal are general spending caps until 2024 and lower funding for the Internal Revenue Service.
  • The Turkish lira slumped to yet another all-time low Tuesday, extending its slide after the re-election of incumbent President Recep Tayyip Erdogan. The currency was last trading at 20.15 against the greenback at around 5 a.m. Tuesday morning local time, surpassing Monday's lows. Earlier in the session, it had briefly weakened to 20.2 levels to the dollar. The lira has lost more than 7% of its value since the start of the year.
  • Tesla Chief Executive Elon Musk is expected to visit China this week, three people with knowledge of the matter told Reuters, in what would be his first trip to the country in three years. Musk is reportedly due to meet senior Chinese officials and to visit Tesla's Shanghai plant.
  •  PRO The Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics are both important players in the increasingly competitive chip-making sector. However, when it comes to capitalizing on the growing trend of artificial intelligence, TSMC seems to have an edge.

The bottom line

The wrangling on Capitol Hill is not over yet.

As expected, some right-wing Republicans have voiced their opposition to the deal to raise the U.S. debt ceiling. A crucial first test will come on Tuesday, when the House Rules Committee takes up the bill, in a necessary first step before a vote in the full House.

If approved, the deal would remove the prospect of the world's largest economy defaulting. That would in turn allow markets to return their attention to inflation and monetary policy.

This Friday's jobs data for May will be closely watched for signs of what the U.S. Federal Reserve might do next. Any more tightening may start to have a real effect on the economy later this year, making it even more difficult for U.S. small and medium companies to borrow money. Consumers are also keeping a tighter rein on their purse strings, fearing the effects of soaring inflation.

Tired of watching the politics and macroeconomic situation play out?

Technology always seems the answer.

The euphoria over artificial intelligence helped add about $200 billion to Nvidia's market cap in under two days of trading after the chipmaker released blockbuster earnings last Wednesday.

Its chief executive Jensen Huang introduced in Taiwan Monday a new AI supercomputer platform aimed at building generative AI models that will help anybody be a programmer, just by speaking to the computer.

Will this push Nvidia's market cap beyond $1 trillion?

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