Traders work the floor at the New York Stock Exchange (NYSE) during the opening bell in New York on May 23, 2023. Stock markets slid on May 23 after fresh talks between President Joe Biden and House Speaker Kevin McCarty on raising the US debt ceiling ended without an agreement as a crucial deadline approaches. (Photo by ANGELA WEISS / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)
Angela Weiss | Afp | Getty Images
Here are the most important news items that investors need to start their trading day:
1. Gloom grows
This week isn’t looking so hot for stocks. After a mixed session Monday, the three major U.S. stock indices all fell Tuesday, with the Nasdaq and the S&P 500 each declining by more than 1%. And each day without a debt ceiling deal in Washington (see below for more) ratchets up the tension as investors dwell more on what could be the United States’ first sovereign default. Retailers’ earnings haven’t been so strong, either, as companies warn of a slowdown in consumer spending. Kohl’s and mall retailers Abercrombie & Fitch and American Eagle are next up to report Wednesday. In the afternoon, the Federal Reserve is slated to release the minutes from its meeting earlier this month. Follow live market updates.
2. What’s the deal?
Speaker of the House Kevin McCarthy, R-Calif., talks with reporters about the debt ceiling negotiations in the U.S. Capitol on Tuesday, May 23, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
The United States could run out of money to pay its debts as soon as June 1 – eight days from now – and there still isn’t a deal in Washington. Some Republicans questioned whether the deadline is actually so soon, suggesting there’s more wiggle room for talks. Negotiations have been heating up, however, as the White House and House Speaker Kevin McCarthy’s team tightened their focus for compromise on a handful of issues. Wednesday’s talks could be pivotal, especially with lawmakers itching to get out of town for Memorial Day weekend.
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