PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday, continuing to suffer from the stalemate in negotiations on the debt ceiling of the United States.

In early trading, the Dow Jones index lost 159.27 points, or 0.48%, to 33,127.31 points and the broader Standard & Poor’s 500 fell 0.43% to 4,174.46 points.

The Nasdaq Composite lost 0.39%, or 49.66 points, to 12,671.11.

A new meeting between Democrats and Republicans is scheduled during the day while that of the day before was considered “productive” by the participants despite the absence of agreement on the raising of the American debt ceiling.

“If no deal is reached (within nine days), the United States could default on the interest on the debt it owes, which could result in skyrocketing costs of borrowing and a shock wave on the global economy,” said Susannah Streeter, head of foreign exchange and financial markets at Hargreaves Lansdown.

Worries over the debt ceiling as the June 1 deadline nears can be seen in the yield on US one-month bonds which hit an all-time high of 5.88%, while the S&P-500 evolves in a narrow range of 30 points over the last two sessions.

Investors are also waiting at 1:45 p.m. GMT for PMI data for May, while on Friday the PCE price index, the Fed’s preferred measure of inflation, will be released.

In values, Apple and Meta Platforms, sensitive to fluctuations in interest rates, lost 0.8% and 0.1% respectively.

Lowe’s fell 0.26% after the group lowered its annual forecasts for like-for-like sales and profit. Its competitor Home Depot drops 0.27%.

Distributor Dicks Sporting Goods gained 2.17% after a better than expected first quarter.

Zoom Video Communications plunges 5.75% after its results.

* For values ​​to track, click

(Written by Claude Chendjou, edited by Kate Entringer)

Copyright © 2023 Thomson Reuters