US pre-open: Stocks seen muted ahead of more debt ceiling talks
By Michele Maatouk
Date: Monday 22 May 2023
(Sharecast News) - US stock futures pointed to a muted open on Monday as investors continued to eye debt ceiling talks.
At 1140 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were 0.1% firmer.
US President Joe Biden and Republican House Speaker Kevin McCarthy are set to meet at the White House later for further talks on how to avert a potential debt default.
Neil Wilson, chief market analyst at Markets.com, said: "The charade continues."
He said that default risks may be higher but this is "a) always going to be resolved and b) always going to the wire before it is".
In equity markets, Micron shares slumped in pre-market trade after China banned the US chipmaker's products from major infrastructure projects, claiming they pose a national security risk.
In a brief statement issued on Sunday, the Cyberspace Administration of China said that following a review of Micron's products, "serious network security risks" had been found, which posed "significant risks to China's critical information infrastructure supply chain, affecting China's national security".
As a result, critical national infrastructure operators have been ordered to stop buying products from Micron, America's biggest maker of memory chips.
PacWest Bancorp was also likely to be in focus after agreeing to sell a portfolio of 74 real estate construction loans with an aggregate principal balance of around $2.6bn currently outstanding to a subsidiary of Kennedy-Wilson Holdings.
Elsewhere, Meta Platforms fell after EU regulators fined the company $1.3bn for sending user information to the US.
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