(News Bulletin 247) – Wall Street should open lower on Tuesday morning, as investors seem increasingly worried about the repercussions of the budgetary showdown in which Washington is currently engaged.

Half an hour before the opening, futures on the S&P 500 and Nasdaq 100 indices fell 0.3% to 0.5%, announcing a start to the session in the red.

The risk of yet another clash over the debt ceiling in Congress is beginning to worry stakeholders, who fear a repeat of the 2011 shutdown scenario.

At the time, the forced closure of the federal administrations and the loss in the wake of the ‘triple A’ rating of the United States had caused severe upheavals in the financial markets.

Less than a month before the June 1 deadline, beyond which the country would be in default, President Biden has planned to meet the Republicans, the majority in the House of Representatives, today.

So far, neither side has presented a solution that would garner enough support to raise the debt ceiling and avoid the Treasury being forced to prioritize its payments.

“Each time, the default is narrowly avoided by a last minute agreement”, recalls however Philippe de Gouville, CEO and co-founder of the fintech Ismo.

‘Once again, this is what will happen: no one will take the responsibility of putting the USA at fault,’ he adds.

‘This circus will therefore last until June, when the ceiling should be reached’, concludes the professional.

Fund managers are also showing caution on the eve of the publication of the highly anticipated US inflation figures.

For the record, the consensus of economists is counting on a slowdown in the consumer price index to +0.3% in its basic version (‘core’) in April, against +0.4% the previous month.

If the peak of inflation seems to have been reached, it is more likely that the upward pressure continues on housing costs and wage increases, thus complicating the task of the Fed.

In the meantime, no important economic indicator is on today’s agenda.

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