AEO - Futures Melt on Debt Ceiling Nerves
U.S. stock futures fell slightly Wednesday as investors kept an eye on debt ceiling negotiations.
Futures for the Dow Jones Industrials dumped 122 points, or 0.4%, at 33,010.
Futures for the S&P 500 slid 13.25 points, or 0.3% to 4,145.50.
Futures for the NASDAQ Composite lost 37 points, or 0.3%, to 13,691.75.
Negotiators for both sides were expected to meet again Wednesday morning, according to Reuters.
Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June is “highly likely.” House Speaker Kevin McCarthy said he had a “productive” discussion with President Joe Biden on Monday. Nonetheless, there were few indicators of progress made in negotiations on Tuesday.
Even if Washington's officials were to raise the debt ceiling, however, markets could be roiled, according to Bill Merz, head of capital markets research at U.S. Bank Wealth Management. That's because the Treasury will need to issue a lot of debt to replenish its general account, he said.
On the economic front, investors will be watching for the minutes from the Federal Reserve's meeting earlier in May. They will be released Wednesday afternoon.
Investors will also be looking toward more earnings announcements. Clothing retailer American Eagle Outfitters and semiconductor giant Nvidia will be posting their results Wednesday after the bell.
In Japan, the Nikkei 225 dipped 0.9%, while in Hong Kong, the Hang Seng fell 1.6%.
Oil prices climbed $1.17 to $74.08 U.S. a barrel.
Gold prices gained $5.50 to $1,980.00 U.S. an ounce.