Xinhua
24 May 2023, 04:14 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 Pakistan Telegraph 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 Pakistan Telegraph.
More InformationCONCORD, New Hampshire: A federal judge in New Hampshire issued a crucial ruling on July 10 against President Donald Trump's executive...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
ECAULT BEACH, France: On clear days, the white cliffs of the United Kingdom, are visible from northern France, where men, women, and...
ATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...