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Stock market today: Asian markets mostly higher after Biden-McCarthy deal on US debt

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Stock market today: Asian markets mostly higher after Biden-McCarthy deal on US debt

Asian shares are mostly higher after President Joe Biden and House Speaker Kevin McCarthy reached a final agreement on a deal to raise the U.S. national debt ceiling.

Tokyo, Sydney and Shanghai advanced while Hong Kong fell. Markets in Seoul were closed for a holiday.

The agreement on the U.S. debt eased what had been a potentially huge threat to markets worldwide. Biden and McCarthy worked over the weekend to ensure enough support in Congress to pass the measure before a June 5 deadline and avert a disruptive federal default.

“Markets are so far reacting cautiously. Buoyed, but cautious,” Clifford Bennett, chief economist at ACY Securities, said in a commentary.

“This agreement merely rolls the issue to potentially more politically friendly times post the Presidential election in two years. Nothing is certain in this regard, and it is possible resolution will be even more difficult then, than it has been on this occasion,” Bennett said.

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Tokyo’s Nikkei 225 index jumped about 2% in early trading but was trading up 1.3% at 31,325. by midday. The S&P/ASX 200 in Sydney jumped 1% to 7,228.60. The Shanghai Composite index edged 0.2% higher to 3,218.26.

In Hong Kong, the Hang Seng slipped 0.3% to 18,696.34.

U.S. markets will be closed for a holiday on Monday. Investors have another busy week of U.S. economic updates ahead, including data on consumer confidence and employment.

On Friday, technology stocks powered solid gains for Wall Street after chipmaker Marvell Technology surged a record-setting 32.4% after the chipmaker said it expects AI revenue in fiscal 2024 to at least double from the prior year. That follows Thursday’s report from fellow chipmaker Nvidia, which gave a big forecast for upcoming sales related to AI.

The upbeat finish to the week for major U.S. indexes comes amid lingering anxiety over persistently high inflation and broadly weak corporate earnings.

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The S&P 500 rose 1.3% to close at 4,205.45. The Dow Jones Industrial Average gained 1% to 33,093.34. The tech-heavy Nasdaq notched the biggest gains, surging 2.2% to 12,975.69. The index rose 2.5% for the week as artificial intelligence became a big focus for investors.

The revolutionary AI field has become a hot issue. Critics warn that it is a potential bubble, but supporters supporters say it could be the latest revolution to reshape the global economy. The nation’s financial watchdog, the Consumer Finance Protection Bureau, said it’s working to ensure that companies follow the law when they’re using AI.

Wall Street and the broader economy already had a full roster of concerns before the threat of the U.S. defaulting on its debt became sharply highlighted on the list.

A key measure of inflation that is closely watched by the Federal Reserve ticked higher than economists expected in April.

The persistent pressure from inflation complicates the Fed’s fight against high prices. The central bank has been aggressively raising interest rates since 2022, but recently signaled it will likely forgo a rate hike when it meets in mid-June. The latest government report on inflation is raising concerns about the Fed’s next move.

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The latest inflation data also highlighted the continued resilience of consumer spending, which has been a key bulwark, along with the strong jobs market, against a recession. The economy grew at a sluggish 1.3% annual rate from January through March and it is projected to accelerate to a 2% pace in the current April-June quarter.

The impact from inflation and worries about a recession on the horizon have been hitting corporate profits and forecasts. The latest round of company earnings is nearing a close with the profits for companies in the S&P 500 contracting about 2%.

Beauty products company Ulta Beauty fell 13.4% after trimming its forecast for profit margins. Discount retailer Big Lots fell 13.3% after reporting a much bigger loss last quarter than analysts expected.

Investors rewarded several companies that reported strong financial results. Gap rose 12.4% after reporting a strong first-quarter profit.

In other trading Monday, U.S. benchmark crude oil added 81 cents to $73.48 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 84 cents to $72.67 per barrel on Friday.

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The dollar slipped to 140.44 Japanese yen from 140.59 yen. The euro rose to $1.0734 from $1.0724.

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Christopher Reeve’s Son Will Reeve to Appear in James Gunn’s ‘Superman’

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Christopher Reeve’s Son Will Reeve to Appear in James Gunn’s ‘Superman’

James Gunn‘s “Superman” is celebrating both the legacy of the Man of Steel and the actor who originated him on the big screen with a special cameo.

The late Christopher Reeve experienced his greatest commercial success playing Superman and his alter ego Clark Kent in the first four Superman movies. Now, his youngest son, journalist and ABC News correspondent Will Reeve, will make a cameo playing a TV reporter in the upcoming DC Studios movie.

The project is currently filming in Cleveland, Ohio, where local reporters (via Cleveland.com) captured all the behind-the-scenes action, including Reeve’s appearance on set during a major scene. David Corenswet stars as Superman in the character’s latest revival, written and directed by Gunn, the co-head of Warner Bros.-owned DC Studios. The film arrives in theaters on July 11, 2025.

Will Reeve and his older siblings Matthew and Alexandra have had the superhero front of mind lately thanks to Ian Bonhote and Peter Ettedgui’s documentary “Super/Man,” which chronicles their late father’s life and career. The Reeve children appear in the documentary as it explores the actor’s rise to Hollywood icon status and the near-fatal horse-riding accident in 1995 that left him paralyzed from the neck down. (Reeve died in 2004.) Following its buzzy Sundance Film Festival premiere, “Super/Man” finalized a deal to sell to Warner Bros. Discovery for roughly $15 million.

“The majority of my memories of my dad involve him after the accident because I was not yet three years old when he was injured,” Will Reeve told Variety at the festival. “So to see his entire life leading up until that time laid out so poetically and cinematically and authentically by our wonderful directors has been a real gift for me.”

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In that interview, the Reeve children were also asked about their thoughts on Christopher Reeve’s appearance in last year’s Warner Bros. comic book tentpole “The Flash,” in which his iteration of Superman (recreated by CGI) is spotted by Ezra Miller’s Flash out in the multiverse. None of them had watched “The Flash” and they did not have involvement in that cameo. But, Will Reeve’s appearance in the upcoming “Superman” marks a step forward in the synergistic relationship between the family and the studio as all things Superman trend up, up and away.

The documentary will hit the big screen this fall, playing in select theaters on Sept. 21 followed by an encore presentation on Christopher Reeve’s birthday, Sept. 25. DC Studios is collaborating with Fathom Events on the theatrical release.

DC Studios did not return request for comment on Reeve’s cameo.

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Death toll climbs to 116 in religious gathering stampede in India

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Death toll climbs to 116 in religious gathering stampede in India

Thousands of people at a religious gathering in India rushed to leave a makeshift tent, setting off a stampede Tuesday that killed more than 100 and left scores injured, officials said.

It was not immediately clear what triggered the panic following an event with a Hindu guru known locally as Bhole Baba. Local news reports cited authorities who said heat and suffocation in the tent could have been a factor. Video of the aftermath showed the structure appeared to have collapsed.

At least 116 people died, most of them women and children, said Prashant Kumar, the director-general of police in northern India’s state of Uttar Pradesh, where the stampede occurred.

AT LEAST 60 DEAD AFTER STAMPEDE AT RELIGIOUS GATHERING IN NORTHERN INDIA

More than 80 others were injured and admitted to hospitals, senior police officer Shalabh Mathur said.

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“People started falling one upon another, one upon another. Those who were crushed died. People there pulled them out,” witness Shakuntala Devi told the Press Trust of India news agency.

Relatives wailed in distress as bodies of the dead, placed on stretchers and covered in white sheets, lined the grounds of a local hospital. A bus that arrived there carried more victims, whose bodies were lying on the seats inside.

Deadly stampedes are relatively common around Indian religious festivals, where large crowds gather in small areas with shoddy infrastructure and few safety measures.

Police officer Rajesh Singh said there was likely overcrowding at the event in a village in Hathras district about 220 miles southwest of the state capital, Lucknow.

People mourn next to the bodies of their relatives outside the Sikandrarao hospital in Hathras district about 217 miles southwest of Lucknow, India, Tuesday, July 2, 2024. A stampede among thousands of people at a religious gathering in northern India killed at least 60 and left scores injured, officials said Tuesday, adding that many women and children were among the dead and the toll could rise. (AP Photo)

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Initial reports said organizers had permission to host about 5,000 people, but more than 15,000 came for the event by the Hindu preacher, who used to be a police officer in the state before he left his job to give religious sermons. He has led other such gatherings over the last two decades.

Indian Prime Minister Narendra Modi offered condolences to the families of the dead and said the federal government was working with state authorities to ensure the injured received help.

Uttar Pradesh’s chief minister, Yogi Adityanath, called the stampede “heart-wrenching” in a post on X. He said authorities were investigating.

“Look what happened and how many people have lost their lives. Will anyone be accountable?” Rajesh Kumar Jha, a member of parliament, told reporters. He said the stampede was a failure by the state and federal governments to manage large crowds, adding that “people will keep on dying” if authorities do not take safety protocols seriously enough.

In 2013, pilgrims visiting a temple for a popular Hindu festival in central Madhya Pradesh state trampled each other amid fears that a bridge would collapse. At least 115 were crushed to death or died in the river.

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In 2011, more than 100 Hindu devotees died in a crush at a religious festival in the southern state of Kerala.

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Judge delays Trump’s sentencing in hush money case until September

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Judge delays Trump’s sentencing in hush money case until September

Trump became the first former US president convicted of felony charges and was originally set to be sentenced next week.

The judge in Donald Trump’s hush money case has granted a request to delay the former United States president’s sentencing until at least September.

The decision on Tuesday follows a ruling by the US Supreme Court that ordered broad criminal immunity for presidents in their official acts.

Trump’s legal team had cited the top court’s decision in a letter to Judge Juan Merchan requesting the delay in the sentencing, which was originally scheduled on July 11.

The lawyers representing Trump, the presumptive Republican presidential candidate, told Merchan they needed time to build their case that Trump’s conviction on 34 felony charges of falsifying business documents to cover up hush money payments made to an adult actress should be overturned in light of the Supreme Court’s ruling.

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Before Merchan’s decision, prosecutors with the Manhattan district attorney’s office said Trump’s argument was “without merit” but agreed to delay the sentencing.

Merchan said the sentencing would be delayed until at least September 18, less than two months before the November 8 elections.

Prosecutors had argued that Trump falsified business records to cover up his former lawyer Michael Cohen’s $130,000 payment to Stormy Daniels in exchange for her silence on an alleged 2006 sexual encounter with Trump.

They directly connected the payments to a wider scheme to influence the 2016 presidential election.

In their letter to Merchan, Trump’s lawyers argued that during the trial, prosecutors had presented evidence involving Trump’s official acts as president, including social media posts he made and conversations he had while in the White House.

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That evidence should have been protected under presidential immunity, the lawyers said, per the Supreme Court’s Monday ruling.

The ruling from the majority of six justices on the nine-member bench said presidents have “absolute immunity” from criminal liability for any acts within their “core constitutional powers”. Evidence related to those official acts also may not be presented at a trial, the majority opinion said.

However, the ruling, which was assailed by the court’s three liberal justices, said presidents could still be prosecuted for acts outside those powers. The exact delineations remain unclear.

In her dissent, Justice Sonia Sotomayor warned the decision opened the door to “nightmare scenarios”, including possible immunity for assassinating a political rival.

“In every use of official power, the president is now a king above the law,” she wrote.

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Political implications

The Supreme Court ruling bodes well for Trump, who faces three additional criminal trials.

It is expected to be the most bedeviling to the legal argument at the heart of a federal case related to Trump’s efforts to overturn the 2020 presidential election results after his loss to President Joe Biden.

It could also have implications for a state trial in Georgia related to efforts to pressure officials to change the 2020 vote count as well as a second federal trial related to Trump allegedly hiding and hoarding classified White House documents at his Florida estate.

The New York trial, however, was the only trial expected to finish before the election. While the initial guilty verdict did not show a major shift in support for Trump, analysts have argued that a severe sentence could turn off some would-be Trump voters.

Merchan’s decision comes five days after Biden delivered a dismal performance in the first presidential debate against Trump, which has sent the Democrat’s campaign into damage control while bringing concerns over the 81-year-old’s age to the fore.

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On Tuesday, a Reuters/Ipsos poll was released showing one in three Democrats think Biden should end his re-election bid after the debate performance. Still, the poll found no prominent elected Democrat would perform any better than Biden in a hypothetical matchup against Trump.

On Wednesday, Biden was reportedly set to meet with Democratic governors in an effort to allay their concerns.

White House spokesperson Karine Jean-Pierre also said Biden would give his first post-debate interview to ABC News on Friday and would hold a news conference during a NATO conference next week.

She reiterated that Biden has no intention of dropping out of the race.

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