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 San Jose 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 San Jose Sun.
More Information(Photo credit: Mark J. Rebilas-Imagn Images) The Washington Nationals dismissed manager Dave Martinez and general manager Mike Rizzo...
(Photo credit: Kiyoshi Mio-Imagn Images) Jose Altuve went 2-for-4 with a home run and two RBIs, and the Houston Astros pulled away...
(Photo credit: Rick Scuteri-Imagn Images) Michael Lorenzen pitched seven scoreless innings and won for the first time in nearly a...
(Photo credit: Andrew Dieb-Imagn Images) Dallas Cowboys All-Pro kick returner KaVontae Turpin is facing misdemeanor charges of possession...
(Photo credit: Ron Chenoy-Imagn Images) Mickey Moniak finished a double shy of the cycle, Michael Toglia also went deep, and the...
(Photo credit: Bruce Kluckhohn-Imagn Images) Yandy Diaz's go-ahead double in a three-run 10th inning enabled the struggling Tampa...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
PARIS, France: Fast-fashion giant Shein has been fined 40 million euros by France's antitrust authority over deceptive discount practices...
PALO ALTO/TEL AVIV: The battle for top AI talent has claimed another high-profile casualty—this time at Safe Superintelligence (SSI),...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...