Wednesday, October 4, 2023

Wall St falls ahead of debt ceiling vote, concerns over Fed rate hike remain

U.S. stock indexes fell on Wednesday as a deal to raise the country’s debt ceiling loomed for a key vote in Congress, while unexpectedly strong labor market data bolstered bets of another $2 hike. . Federal Reserve Rates.

* The House of Representatives is set to vote on Wednesday on a bill to raise the public debt limit to $31.4 trillion, a key step to avoid a default that could happen as early as next week without action by Congress. Could

* “All indications are that the deal is going to close, but there are headlines about some congressmen who are against it,” said Joe Saluzzi, co-head of business at Themis Trading. “Until this settlement is reached, there will be some panic.”

* The debt ceiling debate weighed heavily on financial markets, but signs of progress prompted the S&P 500 and Nasdaq to post monthly gains in May. The Nasdaq was on course for its best May result since 2020, with a 6.3% gain.

* US job openings rose unexpectedly in April and last month’s data was revised upward, pointing to a continuation of labor market strength that forced the Federal Reserve to raise interest rates again in June. Could

* Traders currently price a 25 basis point hike at the June 13-14 Fed meeting at about 70%.

* Investors now await the Labor Department’s May jobs report, due for release on Friday, which could show the economy’s resilience to higher interest rates and inflation.

* Shares of Microsoft Corp rose 1.2%, helping to counter losses on the Nasdaq, after several brokerages raised their price targets on the company’s AI-driven growth prospects.

* As of 1426 GMT, the Dow Jones Industrial Average was down 276.49 points, or 0.84%, at 32,766.29; While the S&P 500 closed at 4,170.04 units, down 35.48 points or 0.84%. The Nasdaq Composite was down 100.79 points, or 0.77%, at 12,916.64.

Nation World News Desk
Nation World News Desk
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