Breaking News
Investing Pro 0
Free Webinar - Master Indicators: Maximized Trading Potential! | Thursday, June 8 | 12:30PM EDT Enroll Now

Debt limit gridlock, Fed minutes, DeSantis' 2024 bid - what's moving markets

Published May 24, 2023 05:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-0.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.27%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+0.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ESM3
-0.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
1YMM3
-0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- The stalemate in the ongoing debt ceiling negotiations in Washington drags on, threatening to bring the U.S. to the precipice of a possibly damaging default. The Federal Reserve is due to unveil the minutes from the latest FOMC meeting, while Ron DeSantis prepares to announce his 2024 presidential bid during a conversation on Twitter with Elon Musk.

1. Debt ceiling stalemate

Fears that the federal government could soon tip into an unprecedented default are growing after yet another round of unsuccessful talks between representatives of U.S. President Joe Biden and House Speaker Kevin McCarthy over raising the $31.4 trillion debt limit on Tuesday.

McCarthy described the discussions as "very good," although a White House spokesperson later suggested that both sides will eventually need to reach an agreement that does not include "everything that they want." Democrats and Republicans reportedly remain entrenched in their divisions over spending plans.

The window appears to be closing to lift the borrowing limit before the government runs out of money to pay its bills. Treasury Secretary Janet Yellen has said this so-called "X-date" could fall as soon as June 1.

2. Gridlock in Washington hangs over stocks

U.S. stock futures pointed lower on Wednesday as investors nervously watched the unfolding drama in Washington over the debt ceiling.

At 04:24 ET (08:24 GMT), the Dow futures contract was down by 83 points or 0.25%, S&P 500 futures lost 10 points or 0.25%, and Nasdaq 100 futures shed 26 points or 0.19%.

A U.S. default could potentially greatly damage the world's largest economy and roil already anxious global financial markets.

These concerns were highlighted on Wall Street yesterday, where all three of the major indices closed in the red. The blue-chip S&P 500 slumped 1.12%, the tech-heavy Nasdaq Composite fell 1.26%, and the broad-based Dow Jones Industrial Average dipped by 0.69%.

3. FOMC meeting minutes due

Markets will be hunting for clues about the Federal Reserve's future interest rate path when the U.S. central bank releases the minutes from its May meeting at 14:00 ET (18:00 GMT).

At the meeting, policymakers voted for the tenth consecutive rate hike in the Fed's long-standing tightening campaign aimed at cooling red-hot inflation.

The debate now swirls around whether the Fed will choose to push pause on its rate-rising cycle at its meeting next month.

Fed chair Jerome Powell suggested last week that a halt could be in order following a string of recent bank failures. But, on Monday, St. Louis Fed President James Bullard said two more rate hikes this year may still be needed, while his Minneapolis colleague Neel Kashkari said the central bank should signal in June that tightening is not over even if it elects to pause.

4. DeSantis to unveil 2024 presidential bid on Twitter

Ron DeSantis is reportedly gearing up to announce that he will run for U.S. president in 2024 during a conversation with Elon Musk on Twitter on Wednesday.

Speaking at a Wall Street Journal event yesterday, Musk said that he would speak with DeSantis on Twitter Spaces, teasing that there will be "quite an announcement" from the Florida governor.

Several news outlets later reported that DeSantis will use the opportunity to launch his presidential campaign. The WSJ noted that he will also likely file the paperwork with the Federal Election Commission needed to make his bid official today.

For his part, Musk said that he was not trying to endorse any particular candidate, adding that he planned to interview people of all political stripes. However, the billionaire has previously said that he was leaning towards voting for DeSantis.

5. Supply worries boost crude prices

Oil prices rose on Wednesday, but pared back some earlier gains after industry data showed a steep drop in U.S. inventories that hinted at tightening supply conditions ahead of the all-important summer driving season.

Data from the American Petroleum Institute showed that crude stocks fell by about 6.8 million barrels in the week ended May 19, while gasoline inventories dropped by about 6.4 million. If confirmed by official data later in the session, gasoline stocks would have declined for the third consecutive week to their lowest pre-Memorial Day levels since 2014.

The Saudi energy minister added to these supply worries on Tuesday when he warned investors betting that the price of oil will go down to "watch out." This in turn fuelled speculation that the Organization of Petroleum Exporting Countries and its allies may potentially slash production at its next meeting in early June.

At 04:27 ET, U.S. crude futures traded 1.23% higher at $73.81 a barrel, while the Brent contract climbed 1.04% to $77.64.

Debt limit gridlock, Fed minutes, DeSantis' 2024 bid - what's moving markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (23)
Erwa Kablan
Erwa Kablan May 24, 2023 2:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think all ppl gonna be rich who buy bitcoin and crypto in overallI think its gonna be up 0.4 % today 100k
Jay Garrelts
Jay Garrelts May 24, 2023 1:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Deez Nuts 2024
James Long
FauxNews May 24, 2023 12:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A handful of Koch funded, Gerrymandered republicans who don't represent the voters, are using the debt limit to push the Koch agenda( No government regulations, No taxes for the rich, high unemployment so the mega rich can control the masses. Biden needs to invoke amendment 14 Section 4, ASAP !!
Byron Ortega
Byron Ortega May 24, 2023 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
POLITICIANS SHOULD ALL BE IN JAIL. STRAIGHT WHITE HAIRED CROOKS! THIS WORLD IS INSANE! HORRIBLE WORLD WE LIVE IN
Yan Krendel
Yan Krendel May 24, 2023 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What are you doing on Investing.com? Isn't it a capitalist website? You should be commenting in a North Corean printed newspaper. They will like your "thoughts".
ZS Beck
ZS Beck May 24, 2023 10:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Politicians shorting the market. Then they reverse when they know the deal was reached.
Brad Albright
Brad Albright May 24, 2023 10:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow! Thanks for letting us know. What is your source for this very important information?
Kerry Ditto
Kerry Ditto May 24, 2023 9:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there should be some better legislation to avoid annual debt limit issues. current politicians seem less intelligent than used to be. maybe AI could replace at least half of politicians.
Alex Smirnov
Alex Smirnov May 24, 2023 9:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And this better legislation is very simple indeed. It’s called live by your means and not make from the world’s reserve currency some ponzi scheme.
Mark Jannetty
Mark Jannetty May 24, 2023 9:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I agree that the democrats should be replaced. they are worse than a plague
Brad Albright
Brad Albright May 24, 2023 9:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's not annual. Get your facts straight.
The Man
The Man May 24, 2023 9:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't worry. They will reach a resolution. Bidet and dudes in congress have mucho $$$ in the stock market.
Scott Hespen
Scott Hespen May 24, 2023 9:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Let's stop pretending like a default is in the cards. It could run down to the final hour but the fact is that Biden can simply order Yellen to increase the money supply to cover debt obligations at any time under the 14th Amendment. It's all political theater.
Hihi Police
Hihi Police May 24, 2023 9:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's too late to apply the 14th amendment
Andrew Ulferts
Andrew Ulferts May 24, 2023 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nobody if the government defaults, except the corrupt government. Nobody care if DeSantis runs. Only dems would vote for DeSantis.
Andrew Ulferts
Andrew Ulferts May 24, 2023 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
*nobody cares if the gov. Defaults
Brad Albright
Brad Albright May 24, 2023 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Only dems would vote for DeSantis? Thank you for your expert insight.
Sushant Kurhade
Sushant Kurhade May 24, 2023 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's all about creating the suspense, definitely something good might at the last min, which may boost stocks, but won't take it for long..
Luke Knoep
Luke Knoep May 24, 2023 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The governments job isnt to try to boost the stock market
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email