The Dow Jones Industrial Average loses 0.3%; the S&P 500 index falls 0.2%; and the Nasdaq Composite falls 0.3%.
Wall Street’s main indexes erased early gains on Friday, as talks on the US debt ceiling came to a halt, dampening hopes that a deal could be reached soon to avoid default.
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The Dow Jones Industrial Average lost 113.18 points, or 0.3%, to 33,422.73; the S&P 500 index lost 8.52 points, or 0.2%, to 4,189.53; and the Nasdaq Composite fell 36.57 points, or 0.3%, to 12,652.27.
Indices opened higher on optimism that a deal could be reached to raise the debt limit to $31.4 trillion this weekend. However, news of the pause sent indicators tumbling in a volatile session as the Federal Reserve Chairman, Jerome Powellwas speaking at a monetary policy panel.
“The overall tone of the progress both sides have been making in the debt ceiling negotiation process had been a tailwind for the markets and anything that changed that view was likely to hit them,” said Art Hogan of B Riley Wealth in Boston.
“This does not mean that it is the end of the negotiation process. It is just a bump in the road”he added.
Powell said the fallout from recent banking sector woes is taking some of the pressure off the Fed to raise interest rates, while a separate report indicated that Treasury Secretary Janet Yellen pointed to bank CEOs Thursday that more bank mergers may be necessary after the recent bankruptcies.
Source: Ambito
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