Wall Street deepens bearish streak on fears of US debt

Wall Street deepens bearish streak on fears of US debt

The main indices of Wall Street they fell this Wednesday May 24 before the prolongation of the conversations between the White House and the republican congressmen on the increase of the ceiling of debtstoking fears of an unprecedented government default.

The Industrial Average Dow Jones loses 221.91 points, or 0.7%, to 32,833.60 units; while the index S&P 500 loses 31.58 points, or 0.8%, to 4,113.70 units. He Nasdaq Composite subtracts 119.45 pointsor 1%, to 12,440.80 units.

The lack of clear signs of progress in negotiations on raising the $31.4 trillion debt limit ahead of the June 1 deadline weighed on investor sentiment as several rounds of talks failed. have been conclusive.

“As we get closer to the deadline by which the United States will run out of liquidity, the markets will become much more nervous if the stagnation continues”said Jamie Cox, of Harris Financial Group.

Investors are also awaiting the May 2-3 Federal Reserve meeting minutes, due to be released later in the day, to assess the US central bank’s interest rate path.

US debt ceiling meetings

Negotiators for the President of the United States, Joe Bidenand the head of the House of Representatives, kevin mccarthydebt ceiling talks resumed on Wednesday morning, the Republican leader told reporters, adding that the talks remained productive.

On Tuesday, negotiators met for two hours and ended the meeting with no sign of progress, days away from the deadline to raise the government’s borrowing limit to $31.4 trillion or risk suspension. of payments.

“We had very good discussions”McCarthy told reporters.

Both parties remain deeply divided on how to curb the federal deficit, with Democrats arguing wealthy Americans and businesses should pay more taxes, while Republicans want spending cuts.

Source: Ambito

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