Democrats and Republicans finally agreed on raising Debt Ceiling by keeping certain limitations on Government spending and it's a big relief news for US stock markets and Global markets.
Republicans agreed to vote to support increasing of debt ceiling limit on Wednesday subject to by imposing certain terms and conditions related to Government spending. So there is high possibility that there will not be any default on Jun 5th if there is an increase in debt ceiling limit from current 31.4 trillion USD.
Current debt ceiling limit of US is 31.4 tillion USD. If the debt ceiling limit has not raised, then there will be defaults from US Government to pay loans and even there will be delays related to payments to Government employees and social programs related to Government.
If they haven't come to understanding related to raising debt ceiling, not only US, globally stock markets would have tumbled over 5%.
Coming to some understanding to raise debt ceiling subject to some terms and conditions related to how the Government spending will be happy news for US stock markets.
However some additional rules will pop up related US Government spending. In couple of areas, Government spending may reduce.