Wall Street Worries Amid Manufacturing Decline and Debt Ceiling Talks
Wall Street’s worries about a slowdown in its economic cycle have been implied for several reasons. A recently released report shows that manufacturing conditions and activities have dropped by an alarming level. Which raises concerns about the U.S. business condition and manufacturing activities in the long term.
With a tight labor market and a steady, stable rally in hiring numbers, U.S. manufacturing and economy might face a tightening labor market in the next two quarters.
This has raised major concerns among investors and market specialists, despite the cooling down in manufacturing costs and material prices.
On top of that, higher interest rates have played a negative role in borrowing costs and business conditions. The U.S. central bank lifted its key interest rates for ten consecutive meetings, starting in March last year. This tightening monetary policy has limited the U.S. economy to a certain degree, causing a massive drop in most stock market share prices, and some companies have lost even 70%.
This tightening condition has raised other concerns, particularly when the U.S. Congress is discussing a new deal to lift the debt ceiling.
The White House administration and U.S. President Joe Biden expressed enthusiasm about the deal.
Washington: The U.S. president, Joe Biden, shows his admiration for the congressional new deal idea to raise or suspend the debt limit. Republicans think that this deal might help the U.S. economy and business conditions to prevent market fallout and a recession in the future.
The deal was revealed after rising concerns of a market slowdown due to the U.S. tightening monetary policy.
However, House Speaker Kevin McCarthy’s recent comments hint that the deal might take longer than it is supposed to. The tension between the two powerhouses continues, even when the U.S. economy is at stake. McCarthy says that we are still far apart, and he accused the Republicans of staging the whole thing. He added that they don’t even want to make a deal; the three-day meeting was all just for showing that we have met.
As for Wall Street, following the failed Friday session, the U.S. stock market main indexes edged higher in today’s session.
Starting with what is moving the market today, the manufacturing data, according to the New York Federal Reserve Empire Indexes, shows that the business condition declined to 3.8 in the current month. Higher than the market expectation of 3.75 in May.
The S&P 500 benchmark was up by 0.15% to a total of 4,130.8 basis points. Apple, Alphabet, and Tesla share prices declined by an average of 0.37% for each, but the heavy tech compost Nasdaq managed to raise its gains by 0.55% to 12,355.16 basis points.
The Dow Jones index is currently down by 0.01% to 33.295.33 points. Following the unexpected consumer sentiment report, investors will now focus on retail sector sales and