Xinhua
24 May 2023, 08:44 GMT+10
NEW YORK, May 23 (Xinhua) -- U.S. stocks ended lower on Tuesday as debt ceiling talks appeared to make little progress ahead of the June 1 deadline to avert a catastrophic U.S. default.
The Dow Jones Industrial Average fell 231.07 points, or 0.69 percent, to 33,055.51. The S&P 500 sank 47.05 points, or 1.12 percent, to 4,145.58. The Nasdaq Composite Index shed 160.53 points, or 1.26 percent, to 12,560.25.
Ten of the 11 primary S&P 500 sectors ended in red, with materials and technology leading the laggards by losing 1.54 percent and 1.50 percent, respectively. Energy bucked the trend by rising 1.04 percent.
U.S. stocks fell Tuesday as House Speaker Kevin McCarthy told fellow Republicans that the debt ceiling negotiations still have some distance to go, with government spending cuts remaining a major obstacle between the two sides, according to Bloomberg.
Investors have been closely watching the debt limit impasse this week. U.S. President Joe Biden and McCarthy failed to reach a deal to raise the debt limit in a Monday meeting that McCarthy described as "productive," while Treasury Secretary Janet Yellen warned again that the United States could default on its obligations as soon as June 1.
Once again, it's been a relatively lively day as far as headlines are concerned and yet there's still a feeling of hesitance in the markets, said Craig Erlam, senior market analyst at OANDA, a supplier of online multi-asset trading services.
"We're still waiting to see a resolution on the debt ceiling, which will undoubtedly come, after more promising talks between President Biden and House Speaker McCarthy," said Erlam.
Meanwhile, investors are paying attention to some indications suggesting the U.S. economy remains resilient, albeit debt ceiling fears mount.
The S&P Global reported Tuesday that the U.S. flash composite purchasing managers' index rose to 54.5 in May, up from 53.4 in April. It marked a 13-month high for the index.
In particular, U.S. services business activity index improved to 55.1 in May from 53.6 in April, also hitting a 13-month high. U.S. manufacturing output index, however, weakened to 51.0 in May from 52.4 in April, the lowest in two months, according to S&P Global.
The economic expansion gathered further momentum in May, but an increasing dichotomy is evident, Chris Williamson, chief business economist at S&P Global Market Intelligence, noted on Tuesday.
"While service sector companies are enjoying a surge in post-pandemic demand, especially for travel and leisure, manufacturers are struggling with over-filled warehouses and a dearth of new orders as spending is diverted from goods to services," said Williamson.
Get a daily dose of Belgium Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Belgium Sun.
More InformationISTANBUL, Turkey: In an interview with Reuters, Willie Walsh, director-general of the International Air Transport Association, (IATA), said airlines are ...
PARIS, France: European plane manufacturer Airbus is reported to be close to a record agreement to sell 500 narrow-body jets ...
DUBLIN, Ireland: Officials in Ireland have reported that 15,589 Ukrainian students were enrolled in schools last month.Throughout Europe, Ireland continues ...
MOSCOW, Russia: Journalists from countries that are "unfriendly" to Russia will be banned from covering this year's St. Petersburg International ...
WASHINGTON D.C.: The Pentagon said this week that the satellite communications service started by billionaire Elon Musk, SpaceX's Starlink, has ...
BRUSSELS, Belgium: EU tech chief Margrethe Vestager has said that a draft code of conduct on artificial intelligence (AI) could ...
PORTLAND, Oregon: A federal trial has begun in Portland, Oregon examining the constitutionality of a stringent gun control law approved ...
PHILADELPHIA, Pennsylvania: Philadelphia Mayor Jim Kenney and members of the city's historical commission have been sued by a group which ...
LANSING, Michigan: Michigan's Department of Natural Resources said by a wildfire in the state has burned through more than 3 ...
ISTANBUL, Turkey: In an interview with Reuters, Willie Walsh, director-general of the International Air Transport Association, (IATA), said airlines are ...
SACRAMENTO, California: Sixteen migrants from Venezuela and Colombia, who had entered the United States through Texas, were transported to California ...
GRAND ISLE STATE PARK, Louisiana: Almost two years after Hurricane Ida struck the barrier island and destroyed most of its ...