“US Debt Ceiling Talks Impact US Stocks as Gold Prices Remain Uncertain”

Investing.com – US stock indexes were mixed during Monday’s session, as Wall Street focused on the US debt ceiling negotiations.

President Joe Biden and House Speaker Kevin McCarthy are scheduled to meet on Monday to continue negotiations as the deadline for a deal quickly approaches. Treasury Secretary Janet Yellen has warned that the US could default on its debt as early as June 1.

“Investors are starting to worry about what happens with the debt ceiling talks, but on the other hand, the economy is still very strong, the labor market is really strong,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance.

The Nasdaq rose 3.04% last week, while the S&P rose 1.65%. The Dow Jones added 0.38%. Equities, led by technology, continue to rally despite uncertainty in Washington and sticky inflation.

Savita Subramanian, a strategist at Bank of America, on Sunday raised her year-end target for the S&P 500 to 4,300 from 4,000, saying that companies’ focus on efficiency will make earnings more stable and that stocks are not overvalued.

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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The markets are preparing

Wall Street banks and asset managers are preparing for the possibility of America defaulting on its debt, amid blocking talks between US officials on raising the US government’s debt ceiling of $31.4 trillion.

The financial sector had prepared for such a crisis before, most recently in September 2021. But this time, the relatively short timeframe for reaching a compromise left the sector very jittery, said a senior industry official.

There are less than two weeks left until the first of June, when the Treasury Department warned that the federal government may not be able to pay all its debts, and that the beginning of June is the deadline for that, according to what was confirmed by Treasury Secretary Janet Yellen at the beginning. this week.

Citigroup chief executive Jane Fraser said the debt ceiling debate was “more troubling” than previous discussions. While JPMorgan (NYSE:) CEO Jamie Dimon said the bank holds weekly meetings about the implications.

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Fidel’s remarks

Neil Kashkari, a president in Minneapolis, said just now that I have to continue to fight inflation, emphasizing that service inflation is still ingrained.

Speaking on CNBC, Kashkari indicated that we may have to go above 6% to get inflation back towards the 2% target, but that is still not clear yet.

St. Louis Federal Reserve Chairman James Bullard said on Monday that the Fed wants to fight inflation while the labor market remains strong, and added that interest rates should rise this year, possibly by 50 basis points.

Pointers now

It decreased by 0.25% at 33,341 points.

It rose at 4,195 points, or 0.1%.

While the compound rose by 0.45% at 12716 points.

markets now

It decreased by 0.3%, and is now recording $1,975.

While it also fell at 1973 dollars an ounce.

It rises by 0.05%, at 103.145 points.

It rose by 0.1% to $75.67 a barrel.

Texas crude gained nearly 0.1% to $71.7 a barrel.