Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

U.S. stocks fall as investors turn attention to Fed decision, debt ceiling

Published 02/05/2023, 14:54
© Reuters.
XAU/USD
-
US500
-
DJI
-
PFE
-
GC
-
LCO
-
CL
-
IXIC
-
CHGG
-
UBER
-

Investing.com -- U.S. stocks were falling as investors await the outcome of the Federal Reserve’s two-day meeting, which starts today.

At 9:39 ET (13:39 GMT), the Dow Jones Industrial Average fell 173 points or 0.5%, while the S&P 500 fell 0.4% and the NASDAQ Composite was down 0.2%.

The Fed will announce a decision on interest rates Wednesday afternoon, and then Chair Jerome Powell will take reporters’ questions at a press conference. Investors will be listening for any hints as to the Fed’s thinking heading into the next meeting in June.

Futures traders expect a quarter of a percentage point rate increase tomorrow but a pause in June as the Fed assesses how its actions to date have worked to cool inflation.

Another issue facing the market in the next couple of weeks is the nation’s debt ceiling. Treasury Secretary Janet Yellen said on Monday that based on tax receipts so far, the date when the government risks default is June 1. 

The government hit the $31.4 trillion debt limit in January and has been maneuvering around it since then to keep payments flowing, but it would run out of opportunities to do that on that new date unless Congress raises or suspends the limit.

President Joe Biden invited leaders in the Senate and the House to a meeting on May 9 at the White House.

In other economic data this week, later this morning the markets will see job opening data and factory orders. The big report comes later this week, with the monthly snapshot on jobs due out on Friday.

Pfizer Inc's (NYSE:PFE) first-quarter profit beat expectations on solid demand for recently acquired products and pneumococcal vaccines. Shares rose 1.4%.

Uber Technologies Inc (NYSE:UBER) shares rose 6.2% after forecasting higher than estimated core earnings.

Shares of educational services firm Chegg Inc (NYSE:CHGG) plunged 48.8% on fears that artificial intelligence chatbots could cut into its business.

Oil fell. Crude Oil WTI Futures were down 2.3% to $73.86 a barrel, while Brent Oil Futures were down 2.1% to $77.58 a barrel. Gold Futures were up 0.1% to $1,995.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.