U.S. Stocks Turning In Lackluster Performance Amid Focus On Debt Ceiling Talks

After ending last Friday’s trading modestly lower, stocks are turning in a relatively lackluster performance during trading on Monday. The major averages have spent the day bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 42.45 points or 0.3 percent at 12,700.35, the S&P 500 is down 2.19 points or 0.1 percent at 4,189.79 and the Dow is down 137.66 points or 0.4 percent at 33,288.97.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves as they await additional news on debt ceiling negotiations after talks broke down last Friday.

President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are reportedly due to hold talks on raising the debt ceiling later in the day.

A lack of major U.S. economic data may also be keeping some traders on the sidelines ahead of the release of some key data in the coming days.

The Commerce Department’s report on personal income and spending is likely to be in focus, as it includes a reading on inflation said to be preferred by the Federal Reserve.

The minutes of the Fed’s latest monetary policy meeting are also likely to attract attention, as traders look for additional clues on the outlook for interest rates.

Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Oil service and software stocks are seeing some strength, while housing and retail stocks have shown notable moves to the downside.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index advanced by 0.9 percent, while Hong Kong’s Hang Seng Index jumped by 1.2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index and the German DAX Index are both down by 0.3 percent.

In the bond market, treasuries are seeing modest weakness, extending a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.5 basis points at 3.707 percent.

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