Market Snapshot: U.S. stocks dip amid debt ceiling anxiety

by | May 23, 2023 | Stock Market

U.S. stocks narrowed initial loses Tuesday as investors weigh more data suggesting economic growth remains resilient against worries about debt ceiling negotiations in Washington and the specter of a market-shaking default.How stocks are trading
The S&P 500 dropped 9 points, or 0.2%, to 4,183

The Dow Jones Industrial Average gained a 0.75 point, or 0%, to 33,287

The Nasdaq Composite dropped 19 points, or 0.1%, to 12,701

On Monday, the Dow Jones Industrial Average
fell 140 points, or 0.42%, to 33287, the S&P 500
increased 1 points, or 0.02%, to 4193, and the Nasdaq Composite
gained 63 points, or 0.5%, to 12721.

What’s driving markets Politics and macroeconomic data are the backdrop for Tuesday morning’s mixed mood. The trading session started on a downbeat note, following President Joe Biden and House Speaker Kevin McCarthy’s Monday talks after the market close. There was no deal, but Biden and McCarthy struck a somewhat upbeat tone. More talks are planned. On Monday, Treasury Secretary Janet Yellen reiterated that the U.S. won’t be able to pay all its bills by early June, and as soon as June 1, if Congress doesn’t raise the debt ceiling. One think tank’s projections Tuesday said the “X-Date” could arrive on June 2. “The debt ceiling seems to be the only market driver,” said Stephen Innes, managing partner at SPI Asset Management. Stresses have been building in government bond markets, pushing up short-term yields and the price of debt insurance, as traders express concern about the impact on markets should Yellen’s feared scenario come to pass. The yield on the six-month Treasury bill
is up to 5.41%, marking the highest level since 2000. At the same time, the economy keeps churning ahead as inflation slowly cools and recession fears still stick. The S&P Flash U.S. services-sector index hit a 13-month high, up 55.1 in May from 53.6 in April. The S&P U.S. manufacturing sector index, meanwhile, slipped to 51 from 52.4, though it was still higher than Wall Street forecasters predicted. Meanwhile, new home sales climbed 4.1%, according to the Commerce Department. The 683,000 annual rate of sales in April beat expectations for 669,000. “The market is bending but it hasn’t broke. That’s good to the updside,” said Ken Mahoney, presiden …

Article Attribution | Read More at Article Source

Share This