US Stocks Fall as Debt Dispute Reignites Concerns: Dow Jones and S&P 500 Slip, NASDAQ 100 Up

NEW YORK (dpa-AFX) – After the price gains at the beginning of the week, US investors acted more cautiously again. Most of the major indices fell on Tuesday. The dominant topic is again the further development of the debt dispute.

The leading index Dow Jones Industrial (Dow Jones 30 Industrial) lost 0.68 percent to 33,120.89 points. The market-wide S&P 500 fell 0.38 percent to 4120.68 points. The tech-heavy NASDAQ 100 rose 0.12 percent to 13,429.33 points.

President Joe Biden is expected to meet with senior Republican and Democrat officials later today on the debt dispute. According to the finance minister Janet Yellen The government could run out of money on June 1 if there is no agreement on raising the debt ceiling. In their estimation, this would result in a collapse on the financial markets and a massive recession.

“The tonality of US politics in the current dispute over the debt ceiling is becoming more acute,” said market expert Andreas Lipkow. This is causing uncertainty on the US stock exchanges.

Among the Dow’s biggest losers, shares of Home Depot fell nearly 3 percent. The hardware store chain lowered its full-year targets after sales fell more than expected in the first quarter. Apparently, economic uncertainty had caused home improvement spending to fall.

Horizon Therapeutics shares fell a good 17 percent. According to the media, the US competition and consumer protection authority FTC is likely to file a lawsuit on Tuesday to block the purchase of Horizon by the biopharmaceutical company Amgen. Amgen shares are down one percent.

The shares of Capital One (Capital One Financial) rose by almost three percent and were among the best values ​​​​in the S&P 500. It had previously become known that the investment company Berkshire Hathaway of star investor Warren Buffett had entered the financial service provider.

At the top of the index, the shares of the chip manufacturer AMD (AMD (Advanced Micro Devices)) rose by almost four percent. The PC market is still correcting itself from the special Corona boom, wrote the expert Stacy Rasgon from the analysis company Bernstein Research. The decline is now “less bad”, and there are signs of a certain stabilization at the pre-corona level. A normalization in the third or fourth quarter seems plausible./la/ngu