Investing.com -- U.S. stocks were falling as the debt ceiling talks dragged on with no solution in sight.
Investors have been hoping for a resolution to the debt ceiling standoff in Washington, with an early June deadline just days away. If Congress doesn’t raise or suspend the ceiling, the government risks the possibility of defaulting on its obligations, something economists and Biden administration officials have warned could cause chaos in financial markets.
Democrats and Republicans are trying to hammer out details on spending levels as part of reaching an agreement, though the sides still appear far apart as of Wednesday morning.
At the same time, investors are looking to the release of the Federal Reserve’s meeting minutes from its last policy session, when it raised rates another quarter of a percentage point. Since then, officials have indicated a pause may be in order in June as they assess the progress of their actions so far to cool inflation.
One key data input will be Friday’s report on personal consumption expenditures , a measure of inflation closely watched by the Fed as it makes its monetary policy.
Uncertainty is raising the level of volatility in markets, with the CBOE Volatility Index , or VIX, up 10.9% on Wednesday, to just over 20.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.