U.S. stock index futures edged higher on Wednesday as top lawmakers inched closer to a deal to avert a debt default, ahead of Target's quarterly results that will be gauged for any further clues of softer consumer spending.

Wall Street's main indexes closed lower on Tuesday after weak results from Home Depot and a reading on U.S. April retail sales that missed expectations highlighted the impact of higher prices and interest rates on consumers.

Target Corp is set to report a rise in first-quarter sales later in the day, although focus will remain on the retail giant's annual forecast, impact of heavy discounting on its margins and how consumers are adjusting to high inflation. Shares of the company inched 0.3% higher in premarket trading.

Also on tap was T.J. Maxx parent TJX Companies Inc's results. The company is also seen reporting a rise in first-quarter revenue, helped by steady demand from cost-conscious consumers.

Democratic President Joe Biden and top congressional Republican Kevin McCarthy on Tuesday made progress in talks to determine whether to increase the U.S. debt limit. After an hour of talks, however, McCarthy told reporters the two sides remained far apart on an agreement.

At 5:31 a.m. ET, Dow e-minis were up 85 points, or 0.26%, S&P 500 e-minis were up 9.25 points, or 0.22%, and Nasdaq 100 e-minis were up 16.25 points, or 0.12%.

Shares of Tesla Inc rose 1.4% after its annual shareholder meeting.

Top boss Elon Musk played down market rumors that he may step down as CEO of Tesla, touched upon two new mass-market models it is developing, and reaffirmed that deliveries of its long-delayed Cybertruck pickup would start this year.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)