The House and Senate left for their Memorial Day break, while the White House and Republicans drew closer to a deal to raise the U.S. debt ceiling but remained deadlocked on crucial issues. Negotiators are discussing a two-year spending deal that would raise the debt ceiling for the same amount of time, extending it past the 2024 election, people familiar with the discussions said, but nothing has been finalized.

Even if a deal is reached soon, lawmakers have wondered if they could get it through both chambers ahead of a deadline next week, when the government could default. If the borrowing limit is breached, the Treasury Department is preparing to change how the U.S. processes federal agencies’ payments, dusting off a contingency plan crafted after the 2011 debt-limit standoff, people familiar with the matter said.

• Local governments are on edge about volatility in the bond market, and some are preparing for spending cuts. (Read)

The move marked an end to a bloody offensive that flattened the eastern Ukrainian city in nine months of fighting. With Bakhmut under Russia’s control, their troops inside Ukraine are now expected to steel themselves for a long-awaited offensive by Ukrainian forces aimed at taking back occupied land. While it waits, Moscow has been launching long-range barrages on targets deep inside Ukraine. Russian rockets slammed into a medical clinic in the southeastern Ukrainian city of Dnipro today, killing at least one person and wounding 15 others, Kyiv said.

• Ukrainian soldiers open up about their motivation to fight. (Read)

Source: FactSet

The business that started 30 years ago with a meeting at a Denny’s is on the cusp of becoming the first $1 trillion chip company, boosted by chips that are driving the artificial-intelligence revolution. Nvidia’s shares—up nearly 160% this year alone—soared more than 24% on Thursday to an all-time high after it said the AI boom is translating into record sales, fueling excitement that the new era in computing is kicking in faster than previously thought.

• In U.S. trading Thursday, the Nasdaq Composite gained 1.7% and the S&P 500 rose 0.9%, while the Dow industrials slipped 0.1%. (Read)
• In global trading Friday, Asian markets closed mixed, Europe was down at midday and U.S. stock futures wavered. (Read) 

Businesses are warning that proposed limits on a grant program and tax credit will make it harder for U.S. companies to compete with their Chinese counterparts and develop new technology. A proposal to severely limit grant recipients’ ability to expand in China would greatly affect South Korean and Taiwanese companies because of their outsize presence there, highlighting the challenge in mobilizing allies’ support for the battle to limit China’s technological advance. The country accounts for one-third of global chip sales and is a linchpin in the semiconductor supply chain. Companies are also seeking to expand the scope of the tax credit for new investments by chip companies and suppliers.

• Pressure is building on the Biden administration to respond to Beijing’s blacklisting of Micron Technology. (Read)

PHOTO ILLUSTRATION: JACOB ALEXANDER FOR THE WALL STREET JOURNAL

AI photo-editing software can transform pictures initially captured with cameras into something that never was, giving people appearances, features and characteristics that aren’t real. While extreme photo editing has been the domain of Photoshop masters for decades, advancements in AI image models now let those of us who struggle with stick figures do it too. WSJ’s Joanna Stern tested four apps leading the way.

• Sign up for Tech Things With Joanna Stern, a weekly newsletter about our always-connected world. (Subscribe)

The high court ruled that the Clean Water Act covers only wetlands with a “continuous surface connection” to navigable waters, overturning a 2006 precedent recognizing federal protection for wetlands with a “significant nexus” to such bodies. The Thursday opinion written by Justice Samuel Alito characterized the decision as resolving questions over the act’s boundaries, sparing property owners the expense and potential criminal liability for misjudging whether their projects were covered under the act. Some of the justices criticized Alito’s narrow reading of the act, saying it would undermine federal protection of the Chesapeake Bay and Mississippi River, and some said the ruling favored property owners, even though the act is about stopping property owners from polluting.

PHOTO: SCOTT OLSON/GETTY IMAGES

DeSantis’s 2024 presidential campaign tried to quickly pivot Thursday from a disastrous launch event on Twitter Spaces the day before by announcing an aggressive travel schedule to early primary voting states while the candidate did interviews with conservative radio hosts and appeared before a large group of fundraisers in Miami. Donors shrugged off the mishap and enthusiastically greeted DeSantis, according to two people familiar with the gathering, but some Republicans found his the decision to eschew a more traditional kickoff undercut his central message: That he is a disciplined and competent alternative to Donald Trump.

• Wednesday’s technical glitches set back Elon Musk’s ambitions to make Twitter a major media platform. (Read)

Mortgage rates, hotel rooms, medical bills and more are negotiable, though just thinking about haggling makes some people cringe. But when you speak up, ask open-ended questions and do a little research, you can save hundreds if not thousands of dollars. Here are five areas where you can negotiate a discount, rated on their return on haggling, and a quiz to test your skills.

PHOTO: CAM POLLACK/THE WALL STREET JOURNAL

A new course being taught in New York City public schools, the country’s largest school district, attempts to teach teenagers how to relate to older Americans. Students watch videos of their elders doing yoga, hang out with them and learn how to talk to them without using the old-age labels baby boomers hate. (Goodbye, “senior.” Hello, “older adult.”)

In response to our question about acts of kindness: 

Bryan Dextradeur, New Hampshire
When I was younger, my neighbor had twins, and I remember my mother cooking for hours and enlisting us to help carry trays of food over for her in a wagon. Years later, when my grandmother died, I remember another neighbor arriving at our door with several meals worth of food for us. It’s been an enduring reminder for me into adulthood to always be perceptive to when a neighbor might be in need and to find simple yet impactful ways of helping with their burden.

Morris Hoover, Texas
When I lived and worked in a major U.S. city, my daily commute always took me to intersections with long waits and panhandlers. I got the idea from someone on the radio to purchase gift cards to hand out instead of cash. So, I began to carry gift cards in my car for a large sandwich chain and handed them out to whoever wanted them whenever I had the opportunity. I promised myself I would stop doing this when it became too expensive for me, but it never did. Knowing that I did not change anybody’s life by giving them free meals but that I did change their today gave me a warm feeling, and it was so much better than sitting in my car pretending I couldn’t see the people standing there.

📣 Question for the next 10-Point:
What costs have you haggled down recently?

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