Wall Street closed lower on jitters over US debt ceiling

Wall Street closed lower on jitters over US debt ceiling

Wall Street closed lower This Tuesday May 16 following a disappointing forecast from Home Depot and US retail sales data, which for April pointed to lower consumer spending, while uncertainty over interest rates and debt limit negotiations weighed on the trust.

The Dow Jones industrial index fell 1%, the S&P 500 fell 0.6% and the Nasdaq technology index fell 0.2%.

In this context, the President of the United States Joe Biden was scheduled to meet with the speaker of the House of Representatives, the Republican kevin mccarthyto try to reach an agreement to raise the US debt limit and avoid a catastrophic default.

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Managers of major US companies, including Goldman Sachs, Morgan Stanley and Nasdaq, have written to the US president and congressional leaders to warn them about the “potentially disastrous consequences” of a default and warned that “failing to resolve the current impasse could easily have even more negative consequences”.

“Although the US economy is strong, high inflation has created stress in the financial system. A default weakens our position in the global financial system”said the businessmen in the open letter.

The latest data indicates a slowdown in the US economy after a series of rate hikes by the Federal Reserve to combat high inflation.

The dollar index rose 0.2% to $102.61 and the euro fell 0.1% to $1.09, while the pound fell 0.4% to $1.25. The yen weakened 0.2% to 136.31 per dollar. Among raw materials, crude oil prices fell 0.8% and spot gold fell 1.4%, to $1,988.95 an ounce.

Source: Ambito

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