U.S. equities were mixed amid uncertainty over the success of House Speaker Kevin McCarthy's efforts to win approval in Congress for the debt ceiling deal negotiated over the weekend with President Joe Biden.

If the deal doesn’t win approval, the federal government could face a potential default next week. The Dow slid, the Nasdaq rose, and the S&P 500 was virtually unchanged. Bond yields plunged. 

It was another good session for companies in the artificial intelligence (AI) sector. Shares of Qualcomm (QCOM) jumped as the smartphone chipmaker explained that its semiconductors will enhance AI’s reach into mobile devices. Nvidia (NVDA) shares rose to an all-time high after the company introduced new AI products. At one point in the session, Nvidia’s market capitalization surpassed the $1 trillion mark. Intel (INTC) was the best-performing stock in the Dow, with shares up 3%.

Paramount Global (PARA) was the leader of the S&P 500 after the stock was upgraded by Wolfe Research. Shares of rival Netflix (NFLX) also advanced. Tesla (TSLA) shares were higher as CEO Elon Musk traveled to China and the country’s foreign minister indicated Musk was willing to expand the electric vehicle maker’s business there. Ford (F) shares gained after an analyst upgrade. Airline shares climbed after Memorial Day air travel exceeded pre-pandemic levels.

Fears that the U.S. could default sent oil futures tumbling 4%, and shares of oil companies fell along with them. Shares of Comerica (CMA) tumbled on a report the bank was in violation of a contract with the U.S. Treasury. Target (TGT) shares sank for the eighth consecutive day over the controversy surrounding its marketing of LGBTQ+ clothing. Consumer staples stocks declined, with shares of Mondelez International (MDZL), Kroger (KR), and Procter & Gamble (PG) among those down. 

Gold prices advanced. The U.S. dollar dropped versus the euro, pound, and yen. It was a mixed trading day for major cryptocurrencies.