“U.S. Stocks Fall as Debt Ceiling Talks Continue: Gold and Dollar React, Markets Await Monetary Policy Path”

Investing.com – U.S. stock indexes fell on Wednesday, as debt ceiling talks dragged on and the U.S. default date approached.

At the same time, the markets are looking forward to examining the monetary policy path for the coming period.

Gold baffles the markets now.. between expectations of moving to record levels, and expectations of a halt in the rise in a changing macroeconomic environment.

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What moves the markets?

Negotiators from the two sides are expected to meet again on Wednesday morning, according to Reuters.

Treasury Secretary Janet Yellen earlier warned lawmakers that a potential default in early June was “extremely likely.” While House Speaker Kevin McCarthy said he had a “productive” discussion with President Joe Biden on Monday, there were few signs of progress in the negotiations on Tuesday.

Even with the talks stalled, many on Wall Street remain hopeful that the two sides can reach an agreement.

“These debt ceiling negotiations tend to resolve in a last-minute fashion with concessions from both sides, and this is certainly a historic precedent for getting the job done, albeit there is some panic in the markets,” said Mona Mahajan, chief investment analyst at Edward Jones.

She added that the agreement could fuel a rally in stocks.

In the long term, investors remain focused on inflation and the Federal Reserve. Mahajan added that the decline in inflation and the shift in central bank policy could provide the much-needed stimulus to bring stocks out of their current trading range.

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Meta Hairstyles

Meta has begun its third round of layoffs as part of the company’s cost-saving plan.

The latest round of cuts targets members of business groups and follows an earlier round of layoffs in April that affected employees in technical roles. About 10,000 workers will lose their jobs between the cuts in April and May, after the company’s first round in November that affected 11,000 employees.

The cuts are part of a so-called meta-efficiency year, which Zuckerberg deemed necessary for the company to downsize and become smarter amid a tough economy and a weak digital advertising market.

Meta shares (NASDAQ:) are now down 0.15%, at $246.46.

On the other hand, Lucid Motors (NASDAQ:) shares fell 1.52% to $7.43.

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Yellen’s remarks a while ago

US Treasury Secretary Janet Yellen said on Wednesday that the US labor market remains tight and that could lift core inflation. It said stabilizing apartment rents would help reduce core inflation further.

Meanwhile, US Treasury Secretary Janet kept early June as the deadline for a debt default and said she would soon brief Congress on the government’s finances.

It was hard to be precise about exactly when the US government would run out of resources, but Yellen said she would try to increase the level of accuracy on when.

The US Treasury reiterated on Monday that it expects to be able to pay US government bills only until June 1 without increasing the debt limit, leaving just over a week for White House negotiators and Republicans in Congress to reach an agreement.

Speaking at a Wall Street Journal forum, Yellen said the Treasury Department and President Joe Biden will face tough choices if Congress does not move to raise the debt ceiling.

“There will be some liabilities that we will not be able to pay,” she said.

Pointers now

It decreased by 0.65%, at 32,848 points.

It fell at 4114 points, or 0.75%.

While the complex decreased by 0.95% at 12444 points.

markets now

It decreased by 0.1%, and is now recording $1,973.

While it also fell by 0.2% at 1971 dollars an ounce.

It rose by 0.3%, at 103,660 points.

It rose by 1.9% to $78.29 a barrel.

Texas crude gained nearly 2% to $74.4 a barrel.