US President Joe Biden is expected to meet House Speaker Kevin McCarthy later Monday, as his aides spent the weekend trying to reach a deal.
The deadline for Congress to raise or suspend the cap is fast approaching, with some estimates indicating the government will run out of options to keep paying its obligations on June 1.
Economic analysts and Biden administration officials earlier said the default could create chaos in financial markets.
Uncertainty also hangs in the markets, as the Federal Reserve prepares to meet again next month to decide the next interest rate decision.
Three-quarters of futures traders expect the Fed to hold interest rates steady in June, a pause allowing policymakers to gauge the impact of their decisions on inflation.
Market movements
The Dow Jones index fell 73.94 points, or 0.22%, to 33,352.69 points at 1513 GMT.
The Standard & Poor’s 500 index rose 4.42 points, or 0.10%, to 4,197.13 points.
The Nasdaq Composite Index rose 57.08 points, or 0.45%, to 12,714.96 points.
Chinese authorities had banned some sales of Micron Technology, which was reflected in the company’s shares, which fell 3.37% to $65.86.
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