The main Wall Street indices they closed down on Wednesday, May 24, in a circle in which Talks between the White House and Republican congressmen continue without agreement about the increase in debt ceilingfanning the fear of unprecedented government default.
He Dow Jones Industrial Average lost 253.32 pointsor 0.77%, to 32,802.19 units; while the index S&P 500 lost 30.11 pointsor 0.73%, to 4,115.47 units. He Nasdaq Composite subtracted 76.46 pointsor 0.61%, to 12,483.78 units.
The lack of progress in the negotiations on the increase of the debt limitof 31.4 trillion dollars, before the deadline of June 1 made a dent in investor sentimentas several rounds of talks have been inconclusive.
“Until yesterday, investors have been very bullish on the resolution of the US debt ceiling,” he said. Angelo Kourkafas, Senior Investment Strategist of Edward Jones. “But Now that we are approaching (…) the X date of June 1, we are seeing some caution again.”.
The federal reserve policy also was in the spotlight. The shares maintained their falls after the publication of the Fed meeting minutes May 2-3which showed that Fed officials “generally agreed” last month that the need for further interest rate increases “had become less certain”.
Investors expect the Central Bank to stop its aggressive rate hike campaign in its meeting of June 13 and 14.
He Fed Governor Christopher Wallersaid You are concerned about the lack of progress to contain inflationand although it is possible to skip an interest rate increase at the Central Bank meeting next month, raise campaign not likely to end.
Source: Ambito
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