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

Published 2023-05-23, 10:10 a/m
© Reuters.
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Investing.com -- U.S. stocks are falling as the negotiations over raising the nation’s dead ceiling continue with a deadline fast approaching.

At 9:55 ET (13:55 GMT), the Dow Jones Industrial Average fell 61 points or 0.2%, while the S&P 500 was down 0.2% and the NASDAQ Composite fell 0.1%.

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

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

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 0.8% and Broadcom rose 1.4%.

Lowe’s Companies Inc (NYSE:LOW) shares rose 1.4%, 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) fell 0.8% after it affirmed its annual sales outlook.

Oil rose. Crude Oil WTI Futures were up 1.7% to $73.33 a barrel, while Brent Oil Futures rose 1.6% to $77.22 a barrel. Gold Futures fell 0.4% to $1,969.

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