Wall Street falters. Powell’s Summer Heats Up Than the Debt Ceiling

Wall Street closed the session in negative territory, on a day in which the “yields” of the North American debt eased, after some members of the Federal Reserve (Fed) North American have signaled the possibility of a pause in the rise of the funds rate at the next central bank meeting scheduled for June.

The industrial Dow Jones depreciated 0.41% to 32,908.27 points, while the Standard & Poor’s 500 (S&P 500) retreated 0.61% to 4,179.83 points.

The technological Nasdaq Composite dropped 0.63% to 12,935.29 points.

Among the sectors that focused attention and weighed more on sentiment, banking stood out, after the federal agency responsible for ensuring deposits in the US (FDIC), reported that there was an increase in banks with increased vulnerability in the first quarter .

In the debt market, the “yield” of two-year bonds – more sensitive to Fed movements – subtracted 4.7 basis points to 4.403%.

Ten-year debt interest eased 4.8 basis points to 3.639%, a movement followed by bond yields in all maturities.

Governor Philip Jefferson has signaled that the Fed may pause interest rate hikes in June to give Federal Open Market Committee members more time to assess economic developments.

In line with this idea, the president of the central bank in Philadelphia stated that “we can skip the next meeting”.

Investors were still on the lookout for the decision that might be taken on raising the US debt ceiling. The bill will be voted this Wednesday in the House of Representatives (scheduled for 20:30 local [1h30 de quinta-feira em Lisboa]), then missing the Senate – this with Congress rushing to avoid a US “default”, scheduled for June 5 by the country’s Treasury, if the new rules on the “debt ceiling” do not come into force .

Investors kept a close eye on shares of Hewlett Packard Enterprise, which rose more than 7% – buoyed by guidance for this quarter above analysts’ estimates.

American Airlines rose more than 1%, after raising its profit outlook for this year.

Source: Jornal de Negócios by www.jornaldenegocios.pt.

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