Stocks Fall as Debt Ceiling Negotiations Halted, S&P 500 Has Best Week Since March

Stocks Fall as Debt Ceiling Negotiations Halted, S&P 500 Has Best Week Since March

Stocks fell on Friday as GOP negotiators halted ongoing debt ceiling negotiations, which raised doubts about a deal being reached soon. The Dow Jones Industrial Average dropped 109.28 points, or 0.33%, to 33,426.63. The S&P 500 slipped 0.14% to 4,191.98, and the Nasdaq Composite slid 0.24% to 12,657.90. However, despite Friday’s losses, all three major averages capped the week with gains.

S&P 500 Has Best Week Since March

The S&P 500 and Nasdaq Composite had their best weekly performance since March, gaining 1.65% and 3.04%, respectively. The Dow Jones Industrial Average added 0.38%. Traders mounted bets on Thursday that a U.S. debt ceiling deal could be reached soon, following comments from House Speaker Kevin McCarthy suggesting a potential deal could come as soon as next week.

Federal Reserve Chairman’s Comments Keep Losses in Check

Despite the Friday losses, Federal Reserve Chairman Jerome Powell’s comments helped keep the losses in check. Powell said that interest rates may not have to rise as much as expected to quell inflation, which eased investors’ concerns. B. Riley Financial’s Art Hogan said, “Markets have had a fairly constructive week and were trading better as in the early hours of today’s trading day, in large part due to a more constructive or positive sentiment around the debt ceiling negotiations.” However, he added that the uncertainty about the debt ceiling negotiations could cause a bit of a sell-off going into the weekend.

World

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