The New York stock market ended in the red this Friday after a good week, after the interruption of the political negotiations for avoid a default in the United States.
The indices, which started the day positively, lost ground and closed with losses. The Dow Jones yielded 0.33% to 33,426.63 points, the Nasdaq technology 0.24% to 12,657 points, and the S&P 500 0.15% to 4,191.98 units.
The leader of the Republicans in the United States House of Representatives, Kevin McCarthy, announced this Friday that negotiations to increase the country’s debt limit and avoid a default entered a “pause”, amid “real differences”, according to the White House.
The Republicans claim to lower public spending and the fiscal deficit, and they want to reduce the issuance of debt that usually makes it possible to cover that gap.
Democrats and Republicans do not agree on this increase in the debt issuance capacity of the United Statesdespite the fact that it is essential for the country to honor its payments to creditors, suppliers, pay salaries of public officials and pensions.
Raising the debt issuance limit is usually a routine procedure in the country, which has used this system dependent on Congress for decades. But this time, as has been the case more frequently, the issue is the subject of a political wrestling match.
The United States exceeded the maximum public debt issuance limit in January, which is US$ 31.4 trillion, and since then extraordinary measures have been applied that only allow it to meet obligations for a while.
After learning of the paralysis in the discussions, the shares reversed their trend, while gold – safe haven value par excellence – rose US $ 19 to US $ 1,978.90 an ounce.
“Disappointment over the debt negotiations is certainly” the source of the stock’s slide, said Jack Ablin of Cresset Capital.
“You have to look at gold. It is a very good barometer of the debt ceiling debate” in the United States, he summarized.
Monetary break?
This Friday also, andFederal Reserve Chairman Jerome Powell said during a monetary policy conference that “no decision” was made by the central bank on interest rates ahead of the June meeting.
For analyst Edward Moya, from Oanda, the president of la Fed “paved the way for a pause” in rate hikes to contain inflation. But to Briefing’s Pat O’Hare, these statements were innocuous.
Among the values of the day, Disney lost 2.57% to US $ 91.35 after announcing that it is giving up building a campus for its employees worth almost US $ 1,000 million in Florida, in the midst of a battle with the governor of the state, the Republican Ron DeSantis.
The origin of the fight has been Disney’s criticism of a law supported by DeSantis that prohibits school lessons on sexual orientation and gender identity.
Source: AFP
