Stock Market Today: Dow Closes Lower for Fourth Day in Debt Ceiling Showdown

Investing.com — The Dow closed lower on Wednesday for a fourth straight day as lawmakers struggled to find a breakthrough in debt ceiling talks, stoking concerns about a possible US default. for the first time in more than four decades.

He closed 0.77% or 255 points, he was down 0.6% and he was down 0.73%.

House Speaker Kevin McCarthy said he and President Joe Biden stayed “far apart” on a number of issues to break the deadlock on reaching a deal to raise the debt ceiling.

McCarthy added, however, that he was hopeful of advancing talks with Biden during a meeting on Wednesday.

Deadlock on a debt ceiling deal brings the US days away from its first default since 1979.

Treasury Secretary Janet Yellen previously warned that the United States could run out of money by June 1.

Worries about a default weighed on investor sentiment and overshadowed other signs that the Fed may pause rate hikes in June.

In discussing the policy outlook, participants generally agreed that, in light of the lagged effects of cumulative monetary policy tightening and the potential effects on the economy of further credit tightening, the extent to which increases Additional additions to the target range may be appropriate after this meeting had become less certain, the Fed’s minutes showed on Wednesday.

Industrials and financials were the biggest drag on the broader market, with the latter coming under pressure from renewed selling at regional banks.

Lincoln National Corporation (NYSE:), Citigroup Inc (NYSE:), and citizens financial group inc (NYSE:) were the worst performing financial stocks.

Energy, however, bucked the downtrend for the second day in a row, as oil prices continued to be supported by expectations of an OPEC+ production cut.