Even Powell can’t save Wall Street. Standard & Poor’s 500 Stops Two Days Rally – Stocks

The stalemate in negotiations over the US debt ceiling closed the session on Wall Street, and good news from US Federal Reserve Chairman Jerome Powell (pictured) wasn’t enough to hold the session. Three main indicators are green.

The Dow Jones Industrial Average lost 0.33% to 33426.63 pointswhile the Standard & Poor’s 500 (S&P 500) index fell 0.14% to 4191.98 points Boycott the “assembly”, which lasted two days.

In turn, the Nasdaq Technology Index lost 0.24% to 12657.90 points.

Morale has been hurt by the deadlock in the Washington talks. Negotiators on the part of the “chair” of the Republican majority in the House of Representatives, Kevin McCarthy, abruptly left the closed meeting with White House representatives shortly after the meeting began, according to Bloomberg.

This situation once again casts doubt on the financial viability of the federal government, which may default from June 1.

In a “research” note cited by Bloomberg, UBS warned that the S&P 500 could drop 20%, to 3,400 points, if the US goes into “default,” although at the moment the bank sees “a possibility.” 50% for Congress to approve a short-term increase’ in the US debt ceiling. Even Powell’s remarks were not enough to save Wall Street from negative territory.

The head of the Federal Reserve said that he is ready to take a break from raising interest rates – and already in June.

“We have come a long way in tightening monetary policy, which has been constraining,” Jerome Powell said, during a Federal Reserve conference in Washington, adding that there was still “uncertainty about the late effects of this tightening and about the extent of the tightening in credit due to the recent pressures.” in the banking sector.” After this data, the swap market reduced the probability of a Fed Funds rate hike at the next meeting in June to 25%.