by Chuck Mikolajczak

NEW YORK (Reuters) – The New York Stock Exchange ended Friday slightly lower after the announcement of a break in negotiations in Washington on raising the debt ceiling of the United States.

The Dow Jones index fell 0.33%, or 109.28 points, to 33,426.63 points.

The broader S&P-500 fell 6.07 points, or 0.14%, to 4,191.98 points.

The Nasdaq Composite fell for its part by 30.94 points (-0.24%) to 12,657.90 points.

Over the week, the Dow nevertheless gained 0.38%, the S&P-500 1.65% and the Nasdaq 3.04%. These are the largest weekly gains since late March for the S&P and the Nasdaq.

After a rising opening on Friday, the major Wall Street indices went into the red with the announcement of a pause in negotiations intended to avoid a default in the United States in early June in the event of no agreement. on raising the federal debt ceiling.

Talks between Democratic President Joe Biden’s administration and Republican majority leaders in the House of Representatives were suspended midday and no date has been announced for their resumption.

Another factor that weighed on the trend, Treasury Secretary Janet Yellen told US bank bosses, according to CNN, that a consolidation of the sector could be necessary after the setbacks of several establishments, which penalized the values ​​of the regional banks.

The chairman of the Federal Reserve, on the other hand, spoke more favorably to equities. While Jerome Powell reaffirmed that the US central bank remained committed to bringing inflation back to its 2% target, he also stressed that the consequences of recent problems in the banking sector were “reducing the pressure” in favor of an increase in inflation. rate.

At individual values, Foot Locker plunged 27% after its full-year sales and profit forecast was downgraded due to weak demand and heavy promotions to clear inventory.

The sporting goods distributor led in its fall Nike (-3.5%) and Under Armor (-4.2%).

Morgan Stanley lost 2.7% as the bank announced its CEO James Gorman would step down as chief executive in the coming year.

(Written by Chuck Mikolajczak, Bertrand Boucey)

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