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U.S. stocks are falling as negotiations on debt ceiling drag on

Published 05/23/2023, 10:07 AM
Updated 05/23/2023, 11:23 AM
© Reuters.

Investing.com -- U.S. stocks are falling as the negotiations over raising the nation’s dead ceiling continue with a deadline fast approaching.

At 11:17 ET (15:17 GMT), the Dow Jones Industrial Average fell 15 points or 0.1%, while the S&P 500 was down 0.3% and the NASDAQ Composite fell 0.2%.

President Joe Biden and House Speaker Kevin McCarthy met at the White House on Monday, and though no deal was reached, both expressed optimism that one was close in hand.

Still, negotiators are still trying to come to an agreement on spending levels. Congress has to raise or suspend the debt ceiling in the next few days to avoid the possibility of a U.S. default. Treasury Secretary Janet Yellen has put that X-date at June 1.

Uncertainty over the debt ceiling is hanging over Federal Reserve policymakers as they look toward their next meeting in June. Futures traders are factoring in a pause in interest rate increases next month while officials assess the progress their actions have taken to date to cool inflation.

Some Fed officials have suggested in recent days that rates would continue to climb this year, as inflation is still running at more than twice the Fed’s 2% target.

Manufacturing PMI was 48.5 in the recent reading, versus 50 expected. Services PMI was 55.1 versus the 52.6 expected. New home sales for April rose 4.1% in the month versus the 3.3% expected.

On Friday, the Commerce Department will release a key measure of inflation for April in the form of the personal consumption expenditure index.

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Apple Inc. (NASDAQ:AAPL) unveiled a new deal with chipmaker Broadcom Inc (NASDAQ:AVGO) to make components for 5G radio frequency in the U.S. Shares of Apple dipped 0.6% and Broadcom rose 1.8%.

Lowe's Companies, Inc. (NYSE:LOW) shares rose 2.5%, but the retailer cut its annual same-store sales forecast amid waning demand for do-it-yourself home projects.

Shares of Dick’s Sporting Goods, Inc. (NYSE:DKS) rose 0.6% after it affirmed its annual sales outlook.

Latest comments

lol Stocks fell just over 1%. This is nothing but profit taking. If stocks were to truly react to debt ceiling fears market indexes would be down thousands of points.
Its crazy how noone is above these whitw haired demons! They do what they want when they want and most beneficial for THEM. Complete scam
maybe reversal stocks rally?
Like at 3pm every day? yes its highly probable regardless of any news
Once in a lifetime stock market crash is coming
How's that gold you bragged about buying at $2,000 working out for you?
oh no!
stop preMem selling and go for bargain hunting?
in reality well prepared recession ready for shorting, in circus just up_down_up_down show
“Dead ceiling”? 🤦‍♂️😆😆😆
Trash politicians, for the people my a*s. More like for your greedy agenda.
sell before Memorial day makes sense
devil Biden have destroy the world.
Gosh. That's sad.
He's too sleepy to do that.
putin, this is what you get when you outsource your trolling operations..
sell in May has begun?
Investment funds are more concerned in Paris than in New York about negotiations on the US debt ceiling...
😂
Jeez
peak of the day reached. going down big and then closing flat or a bit lower?
Debt ceiling news is coming at 2 PM. Rug pull shortly afterwards.
Thanks for information I need it today to be done I am in big position
You are a fool if you act on this person's comment.
@Rajesh: Hey, Rajesh. What happened, liar?
"US stocks narrow losses," one of the most prolific headlines in internet news history.  Of course, the "buying frenzy" this morning magically halts the second the DOW goes green.  Now come the toothpicks to keep it at the breakeven point.  Fraudulent, flagrantly manipulated JOKE.
Headline doesn't say "narrow losses".  There was no "buying frenzy" this morning.
Mitch is at it again...the joke is your comments... Mitch maybe you should get into postage stamps or trading cards you know, something that's easier for you to understand....
Stocks aren't going anywhere...only up when the childish Debt ceiling drama is over and raised (of course) ...good for 1000 points.  Easy money I guess if you like fake markets
you shouldn't have wrote of course, if you really feel of course😂
fallin 0.2% and will be rallying after debt theater is over. Classic
Hi guys and girls. I did some research that gave me a estimation how many people in the entire world are working in the crypto space. You know. The space that still lags a business case and is taking on Ponzi scheme characteristics. The sector that could only exist because of exces liquidity in the system. Well, let me put is this way. It seems the shortage in the workforce of companies that really produce something humans need, is equal to the people working in the crypto space. So what if’s. What if central banks keep draining liquidity from the system to combat inflation. And what if this forces common folk who are huddling crypto to sell. The crypto space will crash. Jobless claims will skyrocket. A lot of crypto workers will have no money to spend. Ordinary Joe the bag holder of crypto will see their wallets drop to almost zero, hence no free cash to buy anything. It will be a disaster. Consider this risk.
there is no dollar Ponzi.,.,you should take a course in monetary policy, . before you Make a fool out of yourself again stephen.
When Stephen finishes his course, he should grab you some information on an English course because you look like a fool everytime you comment.
Everytime is not a word. Correctly, it's every time.
maybe stocks fall big and then recover flat today?
Another miracle "recovery" in the biggest investment JOKE in the world, as average holdings in retirement plans are criminally inflated to catastrophic levels.
you're still here spouting the same nonsense everyday? it's impressively sad...
more stupid remarks from Mitch! ...anyone agreeing with Mitch, should not be trading these markets....
Take Over JP Morgan, Morgan Stanley, Goldman Sachs and Wells Fargo Bank. Take all their money. Problem solved.
Yes! Socialize the financial sector! Brilliant.
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