2023-05-16 21:30:39
Traders work at the Wall Street Stock Exchange
Couple Chuck Mikolajczak
NEW YORK (Archyde.com) – The New York Stock Exchange ended lower on Tuesday as disappointing Home Depot forecasts and monthly U.S. retail sales point to a slowdown in consumer spending amid uncertainty over the US debt and the interest rate hike campaign.
The Dow Jones index fell 1.01%, or 336.46 points, to 33,012.14 points.
The broader S&P-500 lost 26.38 points, or 0.64%, to 4,109.90 points.
The Nasdaq Composite fell for its part by 22.16 points (0.18%) to 12,343.05 points.
A report from the US Department of Commerce published during the day shows that retail sales in the United States rose in April by 0.4%, once morest a consensus of +0.8%.
“It feels like people are starting to get a little more sensitive to the success of (the) Fed’s campaign and the ongoing debt ceiling soap opera is causing angst,” Ken Polcari said. Director of Kace Capital Advisors, Florida.
Recent data suggests a slowdown in the US economy, as the Federal Reserve (Fed) aggressively raises interest rates to fight inflation.
Investors are wondering regarding the future decisions of the American central bank and are following with concern the negotiations on the raising of the debt ceiling of the United States, while a payment default is looming on June 1st.
If the Fed hinted in the press release published following its last meeting of a possible pause in its rate hikes, the president of the Fed of Richmond, Thomas Barkin, said Tuesday that he appreciated this change of language but added that he was ” comfortable” with the possibility of raising rates further if necessary.
Democratic President Joe Biden received the Republican “speaker” of the House of Representatives, Kevin McCarthy, and other congressional leaders in the followingnoon to try to break the impasse on raising the ceiling of the American debt.
On the stock side, Home Depot fell 2.15% and weighed on the S&P-500 following revising its forecast for annual sales downwards and said it expected a sharper-than-expected decline in profit.
“We can say that people are tired of spending on the house, they want to go out (…), according to the results of Home Depot”, commented Ken Polcari.
Horizon Therapeutics plunged 14.17% as the US competition regulator is expected to file a lawsuit to block its takeover by Amgen for $27.8 billion.
(French version Jean Terzian)
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