10 Things Before the Opening Bell: Negotiators race to finalize a tentative debt ceiling deal

Happy Memorial Day, readers. Phil Rosen here in New York. (Did you see last night's Succession series finale?)

Today's newsletter will be brief — below I've rounded up key stories to know before financial markets reopen on Tuesday.

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1. The White House and House Speaker Kevin McCarthy reached an agreement in principle on the debt ceiling. The deal will allow government borrowing to rise and avoid a default ahead of a June 5 deadline. Negotiators are now racing to finalize the bill's text ahead of a vote which is expected to take place on Wednesday. Read more.

2. Nvidia has blown away its longtime rival Intel this year. The AI craze has powered triple-digit stock gains for the former, and no one else has been close to matching its meteoric rise. Full details.

3. JPMorgan seems to be working on a ChatGPT-style tool that will enable AI-powered investing. A trademark application revealed that it could be called "IndexGPT," and Morgan Stanley is also planning to introduce a similar chatbot, CNBC reported. Still, analysts say these products will struggle with what investing legend Howard Marks called "second-level thinking."

4. China won't catch up to the US economy because security concerns will sabotage growth, according to a Claremont McKenna professor. Both world powers are prioritizing national security above their economies, but Beijing will still suffer more, Minxin Pei wrote in a recent op-ed. As firms see growth taking a back seat, private investment in China has only climbed 0.4% so far this year.

5. Bank of America strategists warned that the Fed could pop the AI bubble. In their view, investors shouldn't chase the nascent sector's hype as financial conditions tighten. More on that here.

Curated by Phil Rosen in New York. Feedback or tips? Tweet @philrosenn or email [email protected].

Edited by Jason Ma in Los Angeles and Hallam Bullock (@hallam_bullock) in London.